The recent performance of Bitcoin in the market has not been all sunshine and rainbows. The leading cryptocurrency has been facing a tough time over the past week, with significant losses across almost all large-cap assets. The trend of struggle seems to have gripped the crypto market tightly, leaving many investors concerned about the future.
Recent price action data does not paint a rosy picture for Bitcoin either. According to a new report by blockchain intelligence firm CryptoQuant, the premier cryptocurrency might be headed towards the $60,000 price mark after losing a critical support level. The analytics platform suggests that there is potential for further downside over the coming days, based on Bitcoin’s recent movement.
In its analysis, CryptoQuant highlights the importance of the $65,800 level, which is the trader’s on-chain realized price. This level serves as a crucial support level for Bitcoin and breaking below it could signal an impending decline. The report suggests that every time the Bitcoin price crosses beneath the on-chain realized price, it undergoes an 8-12% correction, leading to the $60,000 price target.
What is particularly concerning is the waning on-chain metrics of Bitcoin, which support the bearish projection. The report indicates that traders’ demand for Bitcoin has been on the decline, with short-term holders reducing their holdings instead of purchasing more BTC. Additionally, the demand from large investors (whales) lacks the strength usually associated with bullish momentum.
Furthermore, stablecoin liquidity has been on a steady decline, adding pressure to the Bitcoin bull run. The growth in Tether USD’s market capitalization has slowed down significantly, from $12.6 billion in late April to $3.7 billion currently. This is the slowest growth rate since November 2023, indicating a lack of liquidity needed to fuel price rallies in the market.
As of now, the Bitcoin price lingers around $64,000, showing a 1.2% decline in the last 24 hours. Over the past two weeks, the premier cryptocurrency has seen a nearly 8% decrease in value, according to data from CoinGecko. The ongoing struggle and uncertainty surrounding Bitcoin’s price raise questions about its future trajectory.
The battle of Bitcoin price continues as the cryptocurrency faces significant challenges in the market. The potential for further downside and the $60,000 price target loom over Bitcoin, highlighting the importance of key support levels and market dynamics. Investors and traders are keeping a close eye on the developments, hoping for a turnaround in Bitcoin’s fortunes.
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