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.
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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.
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Bitcoin Could Crash To $31,000: Cryptocurrency Analyst
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.
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“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.
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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.