The recent performance of Bitcoin in the crypto market has not been impressive, with the leading cryptocurrency struggling to maintain its position. This downward trend has also affected other large-cap assets, indicating a general decline in market sentiment. The price action data suggests that Bitcoin is currently not in a safe zone, as there is a possibility of further downside movement in the coming days. Despite briefly climbing back to $66,000 after falling below $65,000 on June 18, Bitcoin later dropped to as low as $63,500 on June 21. This instability raises concerns about the future price direction of the premier cryptocurrency.
A recent report by blockchain intelligence firm CryptoQuant has presented an interesting prognosis for the price of Bitcoin based on its recent movement. According to the analytics platform, Bitcoin could be heading towards the $60,000 price mark after breaking a significant support level at $65,800. CryptoQuant’s analysis indicates that whenever Bitcoin’s price falls below the on-chain realized price, it tends to undergo an 8-12% correction, leading to a target price of $60,000. This bearish projection is further supported by the declining on-chain metrics of Bitcoin, reflecting a decrease in traders’ demand and stablecoin liquidity.
The analysis by CryptoQuant highlights the weakening on-chain metrics of Bitcoin, signaling a decrease in traders’ interest and demand for the cryptocurrency. Short-term holders are reducing their BTC holdings instead of actively purchasing more, while the demand from large investors, known as whales, lacks the strength typically associated with bullish momentum. Additionally, the declining stablecoin liquidity in the market poses a challenge to the Bitcoin bull run, as it hinders the necessary momentum for price rallies. The slowdown in Tether USD’s market capitalization growth further accentuates the importance of stablecoin liquidity in driving crypto market price movements.
As of the latest data, Bitcoin is trading around $64,000 with a 1.2% decline in the past 24 hours. Over the past two weeks, the premier cryptocurrency has experienced an almost 8% decrease in value, according to CoinGecko. This downward trend in price reflects the overall market sentiment and the impact of various factors influencing Bitcoin’s price performance. The ongoing instability and lack of strong support levels underline the need for caution among investors and traders in the cryptocurrency market.
The recent analysis of Bitcoin’s price performance and market trends paints a bearish picture for the premier cryptocurrency. The lack of strong support levels, declining on-chain metrics, and unstable market conditions indicate a potential further downside in Bitcoin’s price in the near future. Investors and traders need to closely monitor these developments and adjust their strategies accordingly to navigate the volatile crypto market landscape.
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