The recent performance of the Bitcoin price over the last week has left much to be desired, with the leading cryptocurrency facing challenges once again. This downward trend has not been unique to Bitcoin alone, as many other large-cap assets have also experienced significant losses during this period. The data from recent price action indicates that the Bitcoin price may not be out of danger yet, with potential further downside expected in the coming days.
In a report released by blockchain intelligence firm CryptoQuant, an interesting prognosis for the price of Bitcoin has been introduced based on its recent movements. According to the analytics platform, Bitcoin could be on a path towards reaching the $60,000 price mark after losing a significant support level recently. This loss in support was evident when the Bitcoin price fell below $65,000 for the first time in over a month on June 18. Although there was a quick recovery to $66,000 by Thursday, the cryptocurrency could not sustain its upward momentum, dropping to as low as $63,500 on Friday, June 21.
CryptoQuant’s analysis highlights that Bitcoin is currently trading below the crucial $65,800 level, which represents the trader’s on-chain realized price. This metric is essential as it often acts as a support level, indicating a potential decline if the Bitcoin price breaks below it. Each time Bitcoin crosses beneath the on-chain realized price, it typically faces an 8-12% correction, leading to the $60,000 price target. The weakening on-chain metrics further strengthen this bearish outlook, with a decline in traders’ demand for Bitcoin, especially among short-term holders who are reducing their holdings. Additionally, the demand from large investors, often referred to as whales, does not exhibit the strength typically associated with bullish trends.
Stablecoin liquidity has also been a key factor affecting the Bitcoin market dynamics. The decline in stablecoin liquidity has added pressure to the ongoing Bitcoin bull run. For example, the growth in Tether USD’s market capitalization has considerably slowed down, from $12.6 billion in late April to $3.7 billion as of the latest data – marking the slowest growth rate since November 2023. A higher level of stablecoin liquidity is needed to initiate price rallies in the crypto market, making it essential for the Bitcoin price to find stability amidst these challenging conditions.
As of the latest update, the Bitcoin price continues to hover around $64,000, experiencing a 1.2% decline in the last 24 hours. Over the past two weeks, the premier cryptocurrency has witnessed a nearly 8% decrease in its value, as reported by CoinGecko. The uncertainty surrounding Bitcoin’s price movement in the near future remains a cause for concern among investors and traders alike, highlighting the need for a cautious approach in navigating the current market conditions.
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