Bitcoin (BTC) recently reverted to its initial levels after testing the $65,000 mark. Last month, the cryptocurrency hovered around the $50,000 range but failed to sustain its position above $65,000, leading to the formation of lower peaks. This trend could potentially lead to discouraging outcomes for investors.
Why Could Bitcoin Fall to $31,500?
Prominent crypto analyst Ali_Charts shared a chart suggesting BTC might experience deeper lows. Despite September’s usual decline, the projected dip could spell disaster for altcoins. Why the focus on $31,500? The explanation stems from historical patterns, where Bitcoin’s price, upon falling below the Realized Price/Liveliness Ratio, tends to retreat to its Realized Price. The critical level to maintain is $51,600, and closures below this could open the door for a drop to $31,500.
Such conditions could result in altcoin losses exceeding 80%. This scenario, combined with weakened buyer liquidity and potential sell-offs triggered in the ETF channel, could lead to severe outcomes.
ETH and LUNA Coin Insights
Ethereum (ETH) prices have garnered attention from Daan Crypto Trades, who predicts strong volatility for the leading altcoin. The analyst warns that closures below $2,103 are highly risky, although the price earlier surged to $2,800 from this region, making it a crucial chart to monitor.
Concerning LUNA Coin, there is significant support at $0.31. Closures below this level may target a new all-time low (ATL). Currently, there have been no persistent closures below this key region, and bulls are preventing a drop below $0.25.
Conclusions from Analyst Predictions
Based on the analysts’ evaluations, some clear conclusions can be drawn:
- Bitcoin’s price could fall to $31,500 if it closes below $51,600.
- Ethereum faces strong volatility, with a critical support level at $2,103.
- LUNA Coin has significant support at $0.31, with risks of further declines if breached.
- Market conditions and potential BTC drops could exacerbate losses for altcoins.
Given the current market dynamics and the risk of a significant drop in September, many LUNA Coin investors have already exited. However, a sharp decline in BTC may increase losses further, causing even those trying to buy the dip to abandon LUNA Coin.