Bitcoin was trading at the $54,600 level on Monday and has been down nearly 15% in the last 14 days. The leading cryptocurrency is shedding most of its gains this month and moving with the US stock markets.
Dow Jones crashed by over 400 points on Friday as the latest US jobs report turned unimpressive. The economic data published on Friday shows that only 142,000 nonfarm payrolls were created, missing the expected target of 161,000.
Also Read: Digital Ruble Pilot Expands as Moscow Exchange Exits Crypto
The slowdown in the labour market is affecting equities, and Monday’s opening bell could cause further damage. The downturn is also hitting the cryptocurrency market, making Bitcoin trade red. September could be challenging for the cryptocurrency market, including Bitcoin, the US dollar, and the stock market.
Also Read: Donald Trump Warns of Consequences If BRICS Ditches the US Dollar
Bitcoin Could Crash To $31,000: Cryptocurrency Analyst
Source: Time.com
Leading cryptocurrency analyst Ali Martinez warned that Bitcoin could slide down the charts and crash to $31,000. He compared the current price movement around the realized price-to-live ratio (RPL) and forecasted that if BTC fails to hold on to its resistance level of $50,000, a bigger crash awaits the cryptocurrency, he wrote.
Also Read: Dogecoin Killer Shiba Inu: Burn Rate Spikes 451% in 24 Hours: 12M Moved
“Warning. Historically, when Bitcoin falls below the Realized Price-to-Liveliness Ratio, now at $51,600, it often drops further to its Realized Price — currently at $31,500!” he predicted.
For the uninitiated, the RPL metric measures potential tops and bottoms in the charts. In this context, he shared his analysis in Glassnode, anticipating that a crash of $31,500 could be on the cards. Therefore, according to the cryptocurrency analyst, the forecast for Bitcoin for the rest of the year is bearish.
Also Read: How Did This Shiba Inu Investor Turn $8000 to $5.7 Billion?
The slowdown in the labor market is distressing the stock, forex, commodity, and cryptocurrency sectors. In conclusion, Bitcoin could be the first cryptocurrency to be affected if the markets turn bearish in the next few months.
