A well-known crypto analyst is raising some concerns about Bitcoin (BTC). He warns that if Bitcoin can't hold onto a key support level, it could drop significantly.
In a recent update, crypto trader Ali Martinez shared with his 110,700 followers on X that increased selling pressure might push Bitcoin all the way down to $74,000. This would happen if it fails to maintain the $92,000 mark.
Martinez stated, “If Bitcoin falls below $92,000, it could spell trouble. Dropping past this level opens the door to a steep decline, with little support until $74,000.”
He uses a metric called UTXO Realized Price Distribution (URPD) to analyze Bitcoin's price. This metric looks at the distribution of Bitcoin's realized price based on what remains after transactions. His chart shows a big gap between $92,000 and $74,000. He calls this area Bitcoin's “free fall” territory.
Martinez also pointed out an interesting trend. When Bitcoin peaked at $102,000, most traders on Binance started shorting the asset. Now that the price has dipped to $93,000, the situation has flipped.
“On January 6, when Bitcoin was at $102,000, 56.59% of traders on Binance were shorting. After that, we saw a 10% drop, bringing BTC down to $93,000 today. Now, however, 63.92% of traders on Binance are going long,” he explained.
As of now, Bitcoin is trading at $93,918, which is a 1.3% decrease over the last 24 hours.