The recent performance of Bitcoin has been less than stellar, casting a shadow over the entire crypto market. Not only has the leading cryptocurrency failed to see significant gains, but it has also struggled to maintain its value. This trend has been observed not only in Bitcoin but also in other large-cap assets, which have experienced notable losses as well. Unfortunately, the data from recent price action suggests that Bitcoin may not be out of the woods just yet, with the potential for further downside in the near future.
According to a recent report by blockchain intelligence firm CryptoQuant, Bitcoin could be on its way towards the $60,000 price mark after losing a significant support level. The analysis by the analytics platform indicates that the premier cryptocurrency might face a further decline in price over the coming days. The recent movement of Bitcoin has raised concerns among traders and investors alike, as the cryptocurrency dipped below the crucial $65,000 mark for the first time in over a month on Tuesday, June 18. Although Bitcoin managed to climb back to $66,000 by Thursday, it eventually succumbed to bearish pressure, falling to as low as $63,500 on Friday, June 21.
CryptoQuant’s analysis suggests that Bitcoin is currently trading below the important $65,800 level, known as the on-chain realized price. This particular price level serves as a support level for Bitcoin, signaling a potential downturn if the cryptocurrency breaks it to the downside. Based on historical data, CryptoQuant predicts an 8-12% correction every time Bitcoin crosses beneath the on-chain realized price, leading to the $60,000 price target.
The on-chain metrics of the market leader are not painting a rosy picture either. The demand for Bitcoin among traders has been on the decline, with short-term holders reducing their holdings rather than increasing them. Furthermore, the demand from large investors, also known as whales, lacks the usual strength associated with bullish momentum. In addition, stablecoin liquidity has been dwindling, which is putting pressure on the Bitcoin bull run. The gradual decline in Tether USD’s market capitalization growth underscores the lack of liquidity required to fuel price rallies in the crypto market.
As of now, Bitcoin is hovering around the $64,000 mark, with a slight 1.2% decrease in the last 24 hours. Over the past two weeks, the premier cryptocurrency has seen a decrease in value of nearly 8%, as per data from CoinGecko. The current situation indicates a somewhat challenging road ahead for Bitcoin, with various indicators pointing towards a potential further decline in price in the near term.
The future of Bitcoin’s price remains uncertain, with a mix of bearish market indicators and on-chain analysis pointing towards a potential correction towards the $60,000 mark. Traders and investors are advised to closely monitor the market dynamics and be prepared for any further downturns in the value of Bitcoin.
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