ARK Invest Warns Bitcoin Price Could Plummet if Crucial Support Breaks

ARK Invest Warns Bitcoin Price Could Plummet if Crucial Support Breaks

ARK Invest, a prominent global asset management firm, has issued a research report warning that Bitcoin (BTC) could experience a significant drop if it fails to maintain key support levels. According to ARK Invest, the most critical support levels for BTC are currently at $52,000 and $46,000. They emphasize that if Bitcoin falls below these levels, it could lead to a substantial decline. The report highlights that Bitcoin has already witnessed a decline of nearly 9% in August and has not been able to recover since. On-chain indicators suggest that both short-term holders, who often engage in speculative trading, and institutional investors have entered a phase of unrealized losses. Despite the bearish outlook, ARK Invest notes some positive factors, such as the observation that BTC's price decline has not deviated significantly from the movement in the previous cycle. Additionally, the volume of liquidations by short-term holders is not yet large, and the macroeconomic environment remains favorable. Furthermore, the MVRV-Z score, a metric that assesses the overvaluation or undervaluation of an asset compared to its intrinsic value, remains in the bull market zone. As of the end of August, the MVRV-Z score for BTC was 1.6, which is higher than the average of 1.42. At the time of writing, BTC is trading at $58,138.47, showing a slight increase of 0.04%.