bitcoin's price performance over the past week failed to bring glory to the cryptocurrency market as the leading cryptocurrency struggled once again. This trend was reflected in almost all large-cap assets, many of which experienced significant losses.
Unfortunately, recent price action data suggests that bitcoin price is not yet safe as there is a possibility of further declines in the coming days.
Is $60,000 the next stop?
in a new crypto-weekly-report” target=”_blank” rel=”nofollow”>report, blockchain intelligence company CryptoQuant presented an interesting forecast for the price of bitcoin based on its recent movement. According to the analysis platform, the leading cryptocurrency could be heading towards the $60,000 price mark after losing a significant support level.
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On Tuesday, June 18, the price of bitcoin fell below 65,000 for the first time in over a month. btc price did not stay below this level for long as it quickly rose to $66,000 on Thursday. However, the leading cryptocurrency succumbed to bearish pressure, falling as low as $63,500 on Friday, June 21.
<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin is trading below the critical support level of $65.8,000, now below $64,000.
Falling below this threshold suggests a possible 8% to 12% correction towards $60,000. pic.twitter.com/hXwUkC13up
– CryptoQuant.com (@cryptoquant_com) twitter.com/cryptoquant_com/status/1804179918722388058?ref_src=twsrc%5Etfw” rel=”nofollow”>June 21, 2024
In its analysis, CryptoQuant posits that the price of bitcoin is currently below the vital level of $65,800, which is the trader's realized on-chain price. This price indicator can act as a support level, indicating an imminent drop if btc price breaks it lower.
According to CryptoQuant, every time the bitcoin price crosses below the on-chain realized price, it suffers an 8-12% correction, which explains the $60,000 price target. Interestingly, the market leader's declining on-chain metrics support this bearish projection.
As CryptoQuant explains, demand for bitcoin from traders has continued to decline as short-term holders do not purchase btc but rather decrease their holdings. Meanwhile, demand from large investors (whales) currently lacks the strength often associated with bullish momentum.
Furthermore, the liquidity of stablecoins has steadily decreased, which has put pressure on bitcoin's bull run. For example, the 60-day growth of Tether USD (USDT) market capitalization has slowed from $12.6 billion at the end of April to $3.7 billion as of now, the slowest growth rate since November 2023.
Naturally, greater stablecoin liquidity is required to drive price increases in the cryptocurrency market.
bitcoin price at a glance
At the time of writing, the price of bitcoin continues to hover around $64,000, with a drop of 1.2% in the last 24 hours. In the last two weeks, the leading cryptocurrency has lost value by almost 8%, according to data from CoinGecko.
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Featured image from iStock, chart from TradingView
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