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Bitcoin price teetering on the edge of a major drop, analyst warns

Bitcoin price teetering on the edge of a major drop, analyst warns

With the largest part of the cryptocurrency market continuing to record unremarkable price trends, its representative asset – Bitcoin (BTC), is no exception, fighting to keep its head above the $26,000 level as indicators suggest that further declines could be coming.

As it happens, Bitcoin has broken below the 200-day simple moving average (SMA), and its behavior over the last decade suggests the flagship decentralized finance (DeFi) asset could drop to touch its realized price, which currently stands at $20,350, according to the analysis by crypto trading expert Ali Martinez shared on August 21.

Bitcoin realized price analysis. Source: Ali Martinez

Earlier, Martinez posted his observations that predict an even worse dip for the maiden cryptocurrency, arguing that the TD indicator “presented a buy signal on BTC daily chart, but confirmation won’t come until a sustained close above the 200-day MA,” adding that breaching the support between $25,200 and $24,800 might pave the way for $20,000.

Bitcoin price action analysis. Source: Ali Martinez

Bitcoin price analysis

At press time, Bitcoin still remains above this support range, changing hands at the price of $26,061, which indicates a drop of 0.19% on the day, adding up to the 11.36% loss on its weekly chart, as well as declining 12.96% across the previous month, according to the latest data retrieved on August 21.

Bitcoin 7-day price chart. Source: Finbold

Meanwhile, a pseudonymous crypto analyst known as El_crypto_prof has pointed out that the recent Bitcoin sell-off had pushed its relative strength index (RSI) to its lowest level in over 20 months, indicating a potential oversold condition but that historical chart patterns suggest a possible recovery between 28% and 60%.

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