Bitcoin’s price performance last week did little to glorify the cryptocurrency market as the leading cryptocurrency struggled once again. This trend was reflected in almost all assets of large-cap companies, many of which suffered significant losses.
Unfortunately, recent price action data suggests that Bitcoin’s price is not yet protected as there is potential for further declines in the coming days.
Is $60,000 the next stop?
In New report, blockchain intelligence firm CryptoQuant has made an fascinating Bitcoin price prediction based on its recent movement. According to the analytics platform, the leading cryptocurrency may be heading towards a price of $60,000 after losing a significant level of support.
On Tuesday, June 18, the price of Bitcoin dropped below 65,000 for the first time in over a month. BTC’s price didn’t stay below this level for long, as it quickly rose to $66,000 on Thursday. However, the most vital cryptocurrency succumbed to bear pressure, falling to $63,500 on Friday, June 21.
#Bitcoin is listed below the critical support level of 65.8 thousand. dollars, currently below 64 thousand dollars.
Falling below this threshold suggests a potential correction of 8-12% towards 60,000. USD. pic.twitter.com/hXwUkC13up
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
In its analysis, CryptoQuant postulates that Bitcoin’s price is currently below the key level of $65,800, which is the price realized by the on-chain trader. 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 Bitcoin’s price exceeds the on-chain realized price, it is subject to an 8-12% correction, which explains the $60,000 price target. Interestingly, sinking indicators in the market leader’s chain confirm this bearish forecast.
As CryptoQuant explained, investor demand for Bitcoin continues to decline as short-term holders are not purchasing BTC but rather reducing their holdings. Meanwhile, demand from immense investors (whales) currently lacks the strength often associated with bullish momentum.
Moreover, stablecoin liquidity continues to decline, hindering Bitcoin’s bull run. For example, Tether USD’s (USDT) 60-day market capitalization growth has slowed from $12.6 billion in behind schedule April to $3.7 billion today – the slowest growth rate since November 2023.
Naturally, more stablecoin liquidity is required to start price increases in the cryptocurrency market.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is still hovering around $64,000, down 1.2% in the last 24 hours. According to CoinGecko data, the value of the most vital cryptocurrency has fallen by almost 8% over the last two weeks.
Featured image from iStock, chart from TradingView
