Bitcoin is currently trading at $64,000, seeing a decline of around 15% from its previous peak. As the cryptocurrency market is experiencing strong fluctuations, crypto analyst Ali Martinez has pointed out important support points for Bitcoin BTC/USD.
Critical support level at $62,000
Recently, Martinez had a meeting with X to discuss the current developments of Bitcoin. He commented that the $62,000 level acts as a key support point. If Bitcoin fails to hold this level, attention could turn to the next support area around $51,500.
Besides, Martinez also mentioned factors that could push Bitcoin back to upward momentum. Accordingly, if Bitcoin surpasses the $66,250 threshold, its resilience in the market could improve significantly.
According to the URPD, $62,000 is a crucial support zone for #Bitcoin. Losing this level could shift the focus to the next significant demand area around $51,500.
Conversely, if $BTC climbs back above $66,250, it could significantly boost the chances of reigniting the bull run! pic.twitter.com/20zwfktZkx
— Ali (@ali_charts) April 16, 2024
In a post, Ali wrote: “Based on URPD, $62,000 is a key support point for Bitcoin. A loss of this level could result in a move to the next key support area at around $51,500. Conversely, if $BTC recovers and surpasses $66,250, this could increase the chances for a new bull wave!”
Unspent Transaction Output Price Distribution (URPD) analysis is a tool that illustrates the price levels at which Bitcoin’s unspent transaction output pool (UTXO) is formed. More simply, this chart shows the amount of Bitcoin that was last traded within each given price range.
The cryptocurrency market is experiencing a lot of volatility, but Bitcoin’s long-term prospects are still highly appreciated. According to the latest report, Bitcoin has been the best-performing asset in eight of the past 11 years, with an average annual return of 124% from 2013 to 2023.
Related: Bitcoin Drops to $63,500 as Halving Approaches
Not all is optimistic
However, not all experts are blindly optimistic. According to 10x Research, potential risks still exist, especially ahead of important events like the upcoming Bitcoin halving. The report also points out that the recent price downtrend can be seen as part of a narrowing symmetrical triangle pattern, which could see fluctuations of around +/- 10% over time short.
At the same time, prominent cryptocurrency trader, Altcoin Sherpa, gave his personal views on Bitcoin’s next journey, predicting that it will likely reach a new all-time high.
Meanwhile, cryptocurrency analyst Benjamin Cowen said that Bitcoin’s recent 16% drop could be a harbinger of a larger decline, based on the pattern of previous market cycles. These analyzes all emphasize the importance of careful consideration before making investment decisions, especially in a volatile market context.
