Bitcoin's price performance over the past week failed to bring glory to the cryptocurrency market, as the leading cryptocurrency struggled once again. This trend has been reflected in almost all large-cap assets, many of which have experienced significant losses.
Unfortunately, recent price action data indicates that the price of Bitcoin is not safe yet, as there is potential for further decline over the coming days.
Is $60k the next stop?
In new a reportBlockchain intelligence company CryptoQuant has provided an interesting prediction for the price of Bitcoin based on its recent movement. According to the analytics platform, the leading cryptocurrency could be heading towards $60,000 price after losing a major support level.
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On Tuesday, June 18, the price of Bitcoin fell below 65,000 for the first time in over a month. Bitcoin's price did not stay below this level for long, as it quickly rose to $66,000 by Thursday. However, the major cryptocurrency succumbed to downward pressure, falling to a low of $63,500 on Friday, June 21.
#Bitcoin It is trading below the critical support level of $65.8K, and is now below $64K.
A drop below this threshold indicates a possible 8%-12% correction towards $60,000. pic.twitter.com/hXwUkC13up
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
In its analysis, CryptoQuant assumes that the price of Bitcoin is currently below the vital level of $65,800, the realized price of an on-chain trader. This price indicator can act as a support level, indicating an impending decline if BTC price breaks this level to the downside.
According to CryptoQuant, every time Bitcoin price exceeds the price achieved on-chain, it undergoes an 8-12% correction, which explains the $60,000 target price. Interestingly, the market leader's declining on-chain metrics support this bearish outlook.
As CryptoQuant explained, trader demand for Bitcoin has continued to decline, as short-term Bitcoin holders are not purchasing BTC but instead reducing their holdings. Meanwhile, demand from large investors (whales) currently lacks the strength often associated with bullish momentum.
Furthermore, stablecoin liquidity has been continuously declining, putting pressure on Bitcoin's upside. For example, the 60-day growth in the market cap of Tether USD (USDT) has slowed from $12.6 billion in late April to $3.7 billion so far — the slowest growth rate since November 2023.
Naturally, higher liquidity is needed for stablecoins to initiate price increases in the cryptocurrency market.
Bitcoin price at a glance
As of this writing, Bitcoin's price is still hovering around $64,000, with a 1.2% decline over the past 24 hours. In the past two weeks, the value of the major cryptocurrency has fallen by approximately 8%, according to data from CoinGecko.
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Featured image from iStock, chart from TradingView