Bitcoin (BTC) Price Drop to $51,970 Coming If It Fails To Reclaim This Level

The world’s largest cryptocurrency Bitcoin continues to trade under pressure as the BTC price repeatedly failed to break past the resistance levels of $64,000. As of press time, BTC is trading at $60,990 with a market cap of $1.2 trillion.

Bitcoin Price Eyes A Drop Under $52,000

In a recent analysis, crypto analyst Ali Martinez has outlined two distinct scenarios for Bitcoin’s (BTC) price trajectory.

Martinez suggests that if BTC manages to reclaim $64,290 as a support level, it could pave the way for a bullish movement towards $76,610. However, failure to surpass this crucial threshold may result in BTC revisiting support at $51,970.

This analysis underscores the significance of $64,290 as a pivotal level for Bitcoin’s short-term price action. This is one of the largest consolidation phases for Bitcoin in its history. Thus, one can expect some volatility in the coming weeks.

Another crypto market analyst Michael van de Poppe shared similar views. He said that Bitcoin stands at a pivotal level, with its fate hinging on specific price points. Failure to sustain above $60,000 could lead to a final downward movement towards the $52,000 to $55,000 range. However, a breakthrough above $63,000 could signal a resurgence, potentially propelling BTC toward $70,000 to $72,000.

On-chain Activity at Historic Low

Recent insights from Santiment data indicate a notable decline in Bitcoin’s on-chain activity, with transactions nearing historic lows. Analysis shows that traders have significantly reduced their transactional activity over the past two months following Bitcoin’s all-time high.

This decrease in on-chain activity, however, may not necessarily indicate an impending downturn in Bitcoin’s price. Rather, it serves as a signal of heightened fear and indecision among market participants, reported Santiment.

On the other hand, the long-term holders of Bitcoin have been holding their coins firmly. The Long-Term Holder Spending Binary Indicator has revealed a significant shift in behavior among Long-Term Holders (LTH) of Bitcoin. Data indicates that LTHs sold approximately 1.3 million BTC when the price of Bitcoin surged above $73,000. However, current trends suggest that LTHs have ceased selling their BTC holdings.