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 reflected in almost all large-cap assets, many of which suffered significant losses.
Unfortunately, recent price action data suggests that Bitcoin price is not safe yet as there is potential for further downside pressure in the coming days.
Is $60,000 the next stop?
In a new report, blockchain intelligence firm CryptoQuant has put forward an interesting forecast for Bitcoin’s price based on its recent movement. According to the analysis platform, the leading cryptocurrency could be heading towards the $60,000 price 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 below this level for too long, as it quickly climbed back to $66,000 on Thursday. However, the major cryptocurrency succumbed to bearish pressure and fell to a low of $63,500 on Friday, June 21.
#Bitcoin is trading below the critical support level of $65.8K, now below $64K.
Undershooting this threshold indicates a potential correction of 8%-12% towards $60,000. pic.twitter.com/hXwUkC13up
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
In its analysis, CryptoQuant states that the price of Bitcoin is currently below the crucial level of $65,800, which is the price realized by the on-chain trader. This price indicator can act as a support level and signal an impending decline if the BTC price breaks lower.
According to CryptoQuant, every time the Bitcoin price falls below the realized on-chain price, it undergoes 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 explained by CryptoQuant, merchant demand for Bitcoin has continued to decline as short-term holders are not purchasing BTC but rather reducing their holdings. Meanwhile, demand from large investors (whales) currently lacks the strength often associated with bullish momentum.
Furthermore, stablecoin liquidity has steadily declined, putting pressure on Bitcoin’s bull run. For example, the 60-day market cap growth of Tether USD (USDT) 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.
Obviously, higher stablecoin liquidity is required to fuel price increases in the crypto market.
Bitcoin price at a glance
At the time of writing, the Bitcoin price continues to hover around $64,000, down 1.2% in the past 24 hours. According to data from CoinGecko, the leading cryptocurrency has fallen by almost 8% in value over the past two weeks.
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Featured image from iStock, chart from TradingView