Bitcoin price has been on a steady decline over the past week following several economic and market developments. According to data from CoinMarketCap, the leading cryptocurrency is currently hovering around the $60,000 price zone, having lost over 11.17% of its market value in the past seven days. While many crypto enthusiasts are hoping that Bitcoin will find some stability soon, CryptoQuant analyst abramchat has predicted the opposite scenario, suggesting that the crypto market leader could face further losses in the coming days.
Is Bitcoin price far from recovery?
in Quick Share Amid the recent market downturn, Bitcoin has now lost a vital short-term support at the $64,580 price mark, which represents the average price at which investors have purchased Bitcoin over the past six months, abramchat on CryptoQuant stated. This development suggests that the average investor is likely currently underwater, which could lead to increased selling pressure to cut their losses or avoid further losses.
According to abramchat, the recent drop in Bitcoin price can be attributed to economic and political news that has negatively impacted many financial markets, most notably the stock market which recorded Big losses Thursday and Friday.
The Bitcoin price drop is also likely to be influenced by crypto lender Genesis going out of business. finally starting Paying off creditors after declaring bankruptcy in January 2023. On Friday, Genesis transferred $1.5 billion in Ethereum and Bitcoin as it aims to clear $4 billion in debt.
Commenting on the future price trajectory of Bitcoin, Abramchart noted that the digital asset’s failure to reclaim the support level at $64,580 would likely lead to a further decline to around $53,000-$54,000, which represents the next important support area. However, such low price levels were recently seen in early July, following the massive market sell-off by the German government.
Additionally, Abramchart warned investors to be cautious when buying altcoins at the moment. The analyst believes that the current “negativity” in the market could have a significant detrimental effect on currencies other than Bitcoin.
BTC Price Overview
At the time of writing, Bitcoin is trading at $60,597 after falling 1.20% in the last day. Notably, the leading cryptocurrency fell below $60,000 on Saturday for the first time since mid-July.
Currently, Bitcoin’s daily trading volume has decreased by 24.45%, indicating a decline in interest due to reduced buying and selling activity. However, with a market cap of $1.19 trillion, Bitcoin remains the largest digital asset and the ninth largest financial asset in the world.