A widely followed crypto analyst is warning that Bitcoin may see high volatility if BTC fails to hold a key level as support. In a new thread, crypto trader Ali Martinez tells his 138,700 followers on the social media platform X that Bitcoin may have a deep correction if it breaks below $106,800, the lower bound of a trading range on the hourly chart. “Bitcoin remains range-bound, but all eyes are on the $106,800 support level. A breakdown here could trigger increased volatility!” Source: Ali Martinez/X The analyst also says that a massive amount of Bitcoin has been taken out of crypto exchanges in the past month, a sign that investors have entered an accumulation mode. “Over 30,000 Bitcoin have been moved off exchanges in the past month!” Source: Ali Martinez/X Next, Martinez says that volatility may soon occur as the market is starting to show signs of being over-leveraged based on the estimated leverage ratio, which tracks the ratio of open interest divided by the reserve of an exchange. “The estimated leverage ratio across exchanges is climbing fast, signaling that traders are taking on increasingly higher risk.” Source: Ali Martinez/X The long-term holder cohort has been netting massive profits as Bitcoin soared to new all-time highs, according to the analyst. “Bitcoin whales have realized $242.40 million in profits!” Source: Ali Martinez/X However, the analyst says that Bitcoin may have more room to run based on the average amount of possible profits BTC holders are sitting on. “Bitcoin traders are currently sitting on 27% average profits. Historically, things start to look toppy once profits exceed 40%.” Source: Ali Martinez/X Bitcoin is trading for $107,093 at time of writing, flat on the day. Follow us on X , Facebook and Telegram Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Bitcoin Breakdown Below This Support Level Could Set Off Increased Volatility, Warns Crypto Analyst appeared first on The Daily Hodl .
