The recent performance of Bitcoin in the past week has not been impressive, causing a ripple effect across the entire cryptocurrency market. Many large-cap assets also experienced significant losses during this period, indicating a general downturn in the market. Unfortunately, it seems that the price of Bitcoin is still not out of the woods, with the potential for further downside looming in the near future.
According to a recent report by blockchain intelligence firm CryptoQuant, Bitcoin may be on a downward trajectory towards the $60,000 price mark after breaking a significant support level. The premier cryptocurrency dipped below $65,000 for the first time in over a month on Tuesday, only to briefly climb back to $66,000 by Thursday. However, the bearish pressure proved too strong, causing Bitcoin to fall as low as $63,500 by Friday, June 21.
The analysis by CryptoQuant suggests that Bitcoin is currently trading below the crucial $65,800 level, which is the on-chain realized price for traders. This level acts as a support level for the cryptocurrency, and a break below it could signal a further decline in price. CryptoQuant’s data shows that whenever Bitcoin falls below the on-chain realized price, it tends to undergo an 8-12% correction, leading to the $60,000 price target.
Declining On-Chain Metrics and Market Sentiment
The on-chain metrics of Bitcoin are showing signs of weakness, supporting the bearish outlook for the cryptocurrency. The demand for Bitcoin from short-term holders has been decreasing, while large investors (whales) do not seem to have the bullish momentum needed to drive the price up. Additionally, stablecoin liquidity has been on a downward trend, which is essential for fueling price rallies in the crypto market. The slowing growth in Tether USD’s market capitalization is a clear indicator of this trend.
Current State of Bitcoin Price
As of the latest data, Bitcoin is trading around $64,000 with a 1.2% decline in the last 24 hours. Over the past two weeks, the price of the premier cryptocurrency has dropped by nearly 8%, according to CoinGecko. This downward trend and lackluster market sentiment indicate a challenging time ahead for Bitcoin and the wider cryptocurrency market.
The future of Bitcoin’s price seems uncertain and unstable based on the current market conditions and on-chain metrics. Traders and investors should proceed with caution and closely monitor the price movements to make informed decisions in this volatile environment.