Bitcoin (BTC) Attempts to Halt the Freefall, But Analyst Ali Martinez Warns the Asset Is Not Yet Out of the Woods

Over the last 24 hours, Bitcoin (BTC) has attempted to halt the freefall that saw the maiden cryptocurrency lose major support levels.

Bitcoin (BTC) price is attempting to halt the freefall that saw the maiden cryptocurrency lose major support levels. Although BTC is showing short-term bullishness by regaining the $56,000 resistance zone, the asset is not yet out of the woods.

In a July 5 post on X (formerly Twitter), crypto analyst Ali Martinez highlighted a crucial threshold for Bitcoin to revive its bullish momentum.

He noted that Bitcoin currently lacks robust support, and for the bull run to resume, BTC must close above $61,000. Notably, since Bitcoin attained its all-time high of over $73,000, the $60,000 support has been seen as a crucial level that could propel BTC towards a new all-time high, with $100,000 remaining the ideal target.

“Bitcoin currently lacks significant support. And for the bull run to resume, $BTC must close and hold above $61,000.”

The next support to watch

To this end, Martinez shared data by IntoTheBlock highlighting Bitcoin’s In/Out of the Money Around Price (IOMAP), which provides insight into investor sentiment regarding Bitcoin.

The data shows that as Bitcoin was trading around the $54,000 zone, addresses holding the asset between $44,256.50 and $51,841.18 represented approximately 42.86% of total addresses, holding 1.41 million BTC.

Around 11,000 addresses, holding 2.67 thousand BTC (0.08%), were at breakeven between $54,440.20 and $54,920.30. Approximately 57.06% of addresses (about 1.87 million) were at a loss, holding Bitcoin priced between $55,140.18 and $66,973.14.

In this context, the analysis noted that $47,000 is the crucial support to watch. Failure to maintain this level could indicate further downside risk.

Bitcoin’s sustained bearish pressure

Overall, Bitcoin has faced bearish pressure recently, with several triggers being pointed out by analysts.

For instance, the repayment of Mt. Gox customers is currently considered the main bearish catalyst for Bitcoin.

The defunct exchange plans to make approximately $9 billion in repayments, having already transferred 47,229 BTC, leading to panic among market participants.

Meanwhile, Bitcoin is caught between two critical psychological thresholds: $50,000 and $60,000, a Finbold report noted.

The report highlights that Bitcoin’s psychological support aligns closely with the 365-day exponential moving average (365-EMA) at $50,589, indicating a significant year-over-year level. Additionally, the 30-day EMA poses resistance at $62,695.

At press time, Bitcoin is trading at $56,695, with gains of almost 3% in the last 24 hours. On the weekly timeframe, Bitcoin is down nearly 7%.

The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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