Despite bullish sentiments around October, Bitcoin has dipped to its lowest point in three weeks, leading to speculation of further decline or a possible reversal.
After starting the week strong, Bitcoin saw its value decline significantly. On Monday, the price dropped to $63,000, followed by a brief recovery to $64,000. However, this uptrend was short-lived, as Tuesday saw Bitcoin fall further to $62,000.
The downturn continued through Wednesday and Thursday, with Bitcoin dropping below the $60,000 mark multiple times. This sequence of events has left the premier crypto asset at a critical juncture, as experts assess the potential for further movements.
For instance, Ali Martinez recently discussed a key support level that could determine Bitcoin’s next direction. Martinez highlighted $60,365 as a critical threshold. Should Bitcoin break below this level, a dip to $57,420 is possible. However, if Bitcoin maintains this support, a rebound to $63,300 is within reach.
Key #Bitcoin level to watch: $60,365!
If $BTC breaks below this, we could see a dip to $57,420. But if #BTC holds, a rebound to $63,300 is on the table.
All eyes on $60,365! 👀👀👀👀👀 pic.twitter.com/2bDJVLWBtI
— Ali (@ali_charts) October 3, 2024
Levels Based on UTXO Distribution
Martinez’s projection relies on Bitcoin’s URPD (UTXO Realized Price Distribution), which helps identify price levels where Bitcoin holders have acquired their coins, thus indicating possible support and resistance zones. According to data shared by Martinez, several key price levels indicate significant buying and selling activity, which could impact future movements.
At $63,309, 429,167 UTXOs (2.17% of the total) were realized, making it an important resistance level where substantial buying occurred. This suggests that Bitcoin holders who acquired the asset at this price may sell at breakeven at this level, potentially driving resistance against further upward movement.
On the downside, $57,420 serves as a major support level, with 271,557 UTXOs (1.37%) realized at this price. This indicates strong buying interest, which could prevent the asset from falling further if the price approaches this level. Additionally, $54,475 reflects a moderate support level, with 167,809 UTXOs (0.85%) realized, suggesting a potential point where buyers could intervene should the decline continue.
MVRV Ratio Signals Room for Growth
Adding to the speculation, the Market Value to Realized Value (MVRV) ratio indicates the potential for future growth. By October 3, Bitcoin’s MVRV ratio stood at 2.64, which is relatively low compared to past bull markets.
Previous cycles saw MVRV ratios as high as 4.35 in 2017 and 3.7 in 2021. The current level suggests that Bitcoin still has room to grow before reaching a market cycle peak similar to previous ones.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
