The recent performance of Bitcoin has left investors feeling uncertain about the future of the leading cryptocurrency. Over the past week, Bitcoin, along with many other large-cap assets, experienced significant losses. Despite a brief recovery, the price of Bitcoin fell below $65,000 for the first time in over a month, signaling potential further downside.
According to a new report by blockchain intelligence firm CryptoQuant, Bitcoin could be on a path towards the $60,000 price mark after losing a critical support level. The analytics platform suggests that the premier cryptocurrency is currently below the vital $65,800 level, indicating a potential 8-12% correction towards $60,000 if the price continues to decline.
The analysis by CryptoQuant points to a decline in traders’ demand for Bitcoin, with short-term holders reducing their holdings. Additionally, the demand from large investors (whales) lacks the usual strength associated with bullish momentum. Moreover, stablecoin liquidity has been decreasing steadily, which is essential for initiating price rallies in the crypto market.
As of the latest data, the price of Bitcoin hovers around $64,000, with a 1.2% decline in the last 24 hours. The premier cryptocurrency has lost nearly 8% of its value in the past two weeks, reflecting the ongoing bearish sentiment in the market. The slow growth in stablecoin liquidity further adds to the challenges faced by Bitcoin in its price recovery efforts.
The recent price trends and on-chain metrics paint a bearish picture for Bitcoin in the near term. With the price struggling to maintain key support levels and facing declining demand from traders and investors, the path towards $60,000 seems plausible. As the crypto market continues to show weakness, it remains to be seen whether Bitcoin can overcome these obstacles and regain bullish momentum in the future.