Bitcoin is facing critical support and a top analyst warns that the price will fall to $51.5k.

The post Bitcoin Faces Critical Support, Top Analyst Warns $51.5k Price Drop appeared first on Coinpedia.

Bitcoin, the world's most popular cryptocurrency, has recently experienced significant price fluctuations, falling from $70,083 to $61,730 in just one week, a decline of approximately 12%.

Amid this volatility, cryptocurrency analyst Ali Martinez provided a bearish insight that if Bitcoin fails to successfully break the $62,000 level, it could lead to a decline towards the next important resistance area around $51,500.

Martinez's Bearish Outlook

Martinez's analysis focuses on the Unspent Transaction Output Realized Price Distribution (URPD), a metric used to measure Bitcoin's distribution based on the price at which the coin was last traded.

According to URPD, $62,000 is a critical area of ​​support for: #Bitcoin. Loss of this level could shift focus to the next important demand area around $51,500.

Conversely, if $BTC A bounce back above $66,250 could greatly increase the chances of reigniting the uptrend! pic.twitter.com/20zwfktZkx

— Ali (@ali_charts) April 16, 2024

According to Martinez, URPD suggests that $62,000 is a critical support level for Bitcoin. If Bitcoin fails to sustain above this level, Martinez suggests the next important area of ​​demand could be around $51,500.

This indicates that $62,000 is an important level for Bitcoin traders and investors to watch as a breach could potentially lead to further downward movement.

Martinez, on the other hand, points to a more optimistic scenario for Bitcoin. If the cryptocurrency rises above $66,250 again, a successful break above could signal a reversal in the bullish trend.

Bitcoin Eye at $80,000

In line with Martinez's analysis, renowned cryptocurrency analyst Chimp of the North predicts a period of consolidation for Bitcoin. At this stage, the price of Bitcoin may hover below a certain low range, creating bearish sentiment among traders. Meanwhile, he predicted a further decline to around $52,000.

I wouldn't be surprised if this happens in the coming weeks.

Consolidating below the low range causing people to look bearish and call for 'next stop at 52k'.

Then pump it low and above that range without giving people the retest they want.

Goal: $80,000#Bitcoin pic.twitter.com/eud7qAN2DY

— Chimpanzee of the North (@cryptochimpanz) April 16, 2024

But Chimp of the North offers a twist to this story. He suggests that instead of retesting the expected low price range, Bitcoin could experience a sudden rally, potentially pushing the price up to $80,000.

This ambitious price level reflects analysts' optimism about Bitcoin's long-term trajectory despite short-term fluctuations and periods of consolidation.

Bitcoin Price Analysis

Bitcoin is currently trading at $63,960.13, up 2.07% in value over the last 24 hours. However, trading volume declined noticeably, down 13.5% to $39.7 billion. Nonetheless, Bitcoin’s market capitalization remains solid at $1.25 trillion.