The Bitcoin price performance over the past week did not bring glory to the crypto market, because the leading cryptocurrency struggled once more. This trend was mirrored across just about all large-cap assets, lots of which experienced significant losses.
Unfortunately, recent price motion data suggests that the Bitcoin price is just not secure yet, as there’s potential for further downside over the approaching days.
Is $60,000 The Next Stop?
In a recent report, blockchain intelligence firm CryptoQuant recommend an interesting prognosis for the worth of Bitcoin based on its recent movement. Based on the analytics platform, the premier cryptocurrency may very well be headed for the $60,000 price mark after losing a big support level.
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On Tuesday, June 18, the Bitcoin price fell below 65,000 for the primary time in over a month. The value of BTC didn’t stay beneath this level for too long, because it quickly climbed back to $66,000 by Thursday. Nonetheless, the premier cryptocurrency succumbed to the bearish pressure, falling as little as $63,500 on Friday, June 21.
#Bitcoin is trading below the critical support level of $65.8K, now below $64K.
Falling under this threshold suggests a possible 8%-12% correction toward $60K. pic.twitter.com/hXwUkC13up
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
In its evaluation, CryptoQuant postulates that the worth of Bitcoin is currently beneath the vital $65,800 level, which is the trader’s on-chain realized price. This price indicator can act as a support level, signaling an impending decline if the BTC price breaks it to the downside.
Based on CryptoQuant, each time the Bitcoin price crosses beneath the on-chain realized price, it undergoes an 8-12% correction, which explains the $60,000 price goal. Interestingly, the waning on-chain metrics of the market leader support this bearish projection.
As explained by CryptoQuant, traders’ demand for Bitcoin has continued to say no, because the short-term holders will not be purchasing BTC but slightly decreasing their holdings. Meanwhile, the demand from large investors (whales) currently lacks the strength often related to bullish momentum.
Moreover, stablecoin liquidity has been on a gradual decline, putting a strain on the Bitcoin bull run. As an example, the 60-day growth in Tether USD’s (USDT) market capitalization has slowed down from $12.6 billion in late April to $3.7 billion as of now — the slowest growth rate since November 2023.
Naturally, higher stablecoin liquidity is required to kickstart price rallies within the crypto market.
Bitcoin Price At A Glance
As of this writing, the Bitcoin price continues to hover around $64,000, with a 1.2% decline within the last 24 hours. Up to now two weeks, the premier cryptocurrency has decreased in value by nearly 8%, in line with data from CoinGecko.
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Bitcoin price at $64,121 on the each day timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView