The recent performance of the Bitcoin price has left investors and analysts disappointed as the leading cryptocurrency continues to struggle in the market. This downward trend has not been unique to Bitcoin, as many other large-cap assets have also experienced significant losses over the past week.
A recent report from blockchain intelligence firm CryptoQuant has shed light on the potential future of the Bitcoin price. According to their analysis, Bitcoin could be on its way to hitting the $60,000 mark after losing a key support level. This prediction comes after the cryptocurrency fell below $65,000 for the first time in over a month.
One of the key indicators highlighted by CryptoQuant is the on-chain realized price of Bitcoin, which currently stands below $65,800. This price level is crucial as it often acts as a support level for the cryptocurrency. If Bitcoin breaks below this level, it could signal an imminent decline in the price, with potential corrections of 8-12% leading to the $60,000 price target.
The analysis conducted by CryptoQuant also takes into account the declining on-chain metrics of Bitcoin. Notably, the demand for Bitcoin from short-term holders has been on the decline, with many decreasing their holdings instead of purchasing more. Additionally, the demand from large investors, or whales, lacks the usual strength associated with bullish momentum in the market.
Another factor contributing to the bearish projection for Bitcoin is the declining stablecoin liquidity in the market. The growth rate of Tether USD’s market capitalization has slowed down significantly in recent months, which has put a strain on the ongoing Bitcoin bull run. Higher stablecoin liquidity is often seen as a catalyst for price rallies in the crypto market, further adding to the negative sentiment surrounding Bitcoin.
As of the latest data, the Bitcoin price continues to hover around $64,000 with a slight decline in the past 24 hours. Over the past two weeks, the premier cryptocurrency has lost nearly 8% of its value, signaling a challenging period for investors and traders alike.
The future of the Bitcoin price remains uncertain as it struggles to maintain momentum and faces several bearish indicators. The $60,000 price target put forward by CryptoQuant has sparked concerns among investors, highlighting the need for caution and vigilance in the current market environment.