The price of bitcoin has fallen below the key support level of $36,400 identified by top crypto analyst Ali earlier today. At the time of writing, bitcoin is trading around $36,119, down nearly 2% in the last 24 hours.
In an earlier tweet, Ali had noted that $36,400 was providing stable support for bitcoin. However, he warned that a break below this level would open the doors for a drop to $34,300.
This warning now seems to be playing out, as bitcoin has decisively moved below the $36,400 support. With the bears in control, Ali’s next target of $34,300 now looks likely.
“Bitcoin has found stable support around $36,400, but if this level breaks, the next critical demand zones for $BTC are at $34,300 and $30,200.”
As Ali pointed out in the next tweet, the divergence between bitcoin’s price and network growth is a bearish signal that indicates a lack of upside momentum.
“When $BTC price climbs, but network growth slows down, it’s a red flag. It suggests the uptrend might not have enough momentum to sustain. This bearish divergence between #BTC price and network growth is an on-chain sell signal traders should be aware of.”
This warning sign has now materialized into a breakdown below the key support level. Unless bitcoin can reclaim $36,400 quickly, Ali’s bearish target of $34,300 looks imminent.
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