The Bitcoin price performance over the past week failed to bring glory to the crypto market, as the leading cryptocurrency struggled once again. This trend was mirrored across almost all large-cap assets, many of which experienced significant losses.
Unfortunately, recent price action data suggests that the Bitcoin price is not safe yet, as there is potential for further downside over the coming days.
Is $60,000 The Next Stop?
In a new report, blockchain intelligence firm CryptoQuant put forward an interesting prognosis for the price of Bitcoin based on its recent movement. According to the analytics platform, the premier cryptocurrency could be headed for the $60,000 price mark after losing a significant support level.
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On Tuesday, June 18, the Bitcoin price fell below 65,000 for the first time in over a month. The price of BTC didn’t stay beneath this level for too long, as it quickly climbed back to $66,000 by Thursday. However, the premier cryptocurrency succumbed to the bearish pressure, falling as low 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 potential 8%-12% correction toward $60K. pic.twitter.com/hXwUkC13up
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
In its analysis, CryptoQuant postulates that the price 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.
According to CryptoQuant, every time the Bitcoin price crosses beneath the on-chain realized price, it undergoes an 8-12% correction, which explains the $60,000 price target. 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 decline, as the short-term holders are not purchasing BTC but rather decreasing their holdings. Meanwhile, the demand from large investors (whales) currently lacks the strength often associated with bullish momentum.
Furthermore, stablecoin liquidity has been on a steady decline, putting a strain on the Bitcoin bull run. For instance, 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 in 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 in the last 24 hours. In the past two weeks, the premier cryptocurrency has decreased in value by nearly 8%, according to data from CoinGecko.
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Featured image from iStock, chart from TradingView
