The 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 mirrored across almost all large-cap assets, many of which experienced significant losses.
Unfortunately, recent price action data suggests that the Bitcoin price is not safe yet, as there is potential for further downside over the coming days.
Is $60,000 The Next Stop?
In a new report, blockchain intelligence firm CryptoQuant put forward an interesting prognosis for the price of Bitcoin based on its recent movement. According to the analytics platform, the premier cryptocurrency could be headed for the $60,000 price mark after losing a significant support level.
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 beneath this level for too long, as it quickly climbed back to $66,000 by Thursday. However, the premier cryptocurrency succumbed to the bearish pressure, falling as low as $63,500 on Friday, June 21.
#Bitcoin is trading below the critical support level of $65.8K, now below $64K.
Falling under this threshold suggests a potential 8%-12% correction toward $60K. pic.twitter.com/hXwUkC13up
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
In its analysis, CryptoQuant postulates that the price of Bitcoin is currently beneath the vital $65,800 level, which is the trader’s on-chain realized price. This price indicator can act as a support level, signaling an impending decline if the BTC price breaks it to the downside.
According to CryptoQuant, every time the Bitcoin price crosses beneath the on-chain realized price, it undergoes an 8-12% correction, which explains the $60,000 price target. Interestingly, the waning on-chain metrics of the market leader support this bearish projection.
As explained by CryptoQuant, traders’ demand for Bitcoin has continued to decline, as the short-term holders are not purchasing BTC but rather decreasing their holdings. Meanwhile, the demand from large investors (whales) currently lacks the strength often associated with bullish momentum.
Furthermore, stablecoin liquidity has been on a steady decline, putting a strain on the Bitcoin bull run. For instance, the 60-day growth in Tether USD’s (USDT) market capitalization has slowed down from $12.6 billion in late April to $3.7 billion as of now — the slowest growth rate since November 2023.
Naturally, higher stablecoin liquidity is required to kickstart price rallies in the crypto market.
Bitcoin Price At A Glance
As of this writing, the Bitcoin price continues to hover around $64,000, with a 1.2% decline in the last 24 hours. In the past two weeks, the premier cryptocurrency has decreased in value by nearly 8%, according to data from CoinGecko.
Featured image from iStock, chart from TradingView
Opeyemi Sule
Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.
Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.
Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.
When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.
Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.
Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.
Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.
Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.
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