bitcoin price has been on a steady decline over the past week following several economic and market events. According to data from CoinMarketCap, the leading cryptocurrency is currently hovering around the $60,000 price zone, having lost over 11.17% of its market value over the past seven days. As many crypto enthusiasts may hope that bitcoin finds some stability soon, CryptoQuant analyst abramchat has predicted a reverse scenario, indicating that the cryptocurrency market leader may experience further losses in the coming days.
Is bitcoin Price Far From Recovery?
in a bitcoin-has-lost-its-crucial-support” target=”_blank”>Quick post At CryptoQuant, abramchat claimed that amid the recent market crash, bitcoin has lost vital short-term support at the price of $64,580, which represents the average price at which investors have purchased bitcoin over the past six months. Such a development implies that the average investor is likely currently underwater, which may lead to increased selling pressure to cut their losses or prevent further losses.
According to abramchat, the recent drop in the price of bitcoin can be attributed to economic and political news that have negatively affected several financial markets, primarily the stock market, which recorded significant losses Thursday and Friday.
The bitcoin price drop is probably also influenced by the defunct cryptocurrency lender Genesis Finally starting repayments to creditors after filing for bankruptcy in January 2023. On Friday, Genesis transferred $1.5 billion worth of ethereum and bitcoin in an effort to shed $4 billion in debt.
Commenting on the future trajectory of bitcoin’s price, Abramchart states that if the digital asset fails to reclaim the $64,580 support level, a further drop to around $53,000 – $54,000 is likely, which represents the next significant support zone. However, such low price levels were only recently observed in early July, following the market sell-off by the German government.
Furthermore, Abramchart has warned investors to be cautious about buying altcoins at the moment. The analyst believes that the current “negativity” in the market could produce a significant detrimental effect on other currencies apart from bitcoin.
btc Price Summary
At the time of writing, bitcoin is trading at $60,597 after a 1.20% drop over the past day. Notably, the leading cryptocurrency fell below the $60,000 mark on Saturday for the first time since mid-July.
Currently, bitcoin's daily trading volume has also decreased by 24.45%, indicating a low level of interest due to decreased buying and selling activities. However, with a market capitalization of $1.19 trillion, bitcoin remains the largest digital asset and the ninth largest financial asset in the world.
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