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A blockchain company says the price of Bitcoin could reach $60,000
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Bitcoin price trend last week failed to bring glory to the cryptocurrency market, as the leading cryptocurrency struggled once again. This trend was mirrored across almost all large-cap assets, many of which posted significant losses.
Unfortunately, recent price action data suggests that the price of Bitcoin is not yet safe, as there is potential for further downside in the coming days.
Is $60,000 the next stop?
In a new one relationship, blockchain intelligence firm CryptoQuant presented an interesting prognosis for Bitcoin’s price based on its recent movement. According to the analysis platform, the leading cryptocurrency could head towards the $60,000 mark after losing a significant support level.
Tuesday 18 June The price of Bitcoin dropped below 65,000 for the first time in more than a month. BTC price did not stay below this level for too long, as it quickly recovered to $66,000 on Thursday. However, the leading cryptocurrency succumbed to bearish pressure, falling as low as $63,500 on Friday, June 21.
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#Bitcoin is trading below the critical support level of $65.8,000, now below $64,000.
Falling below this threshold suggests a potential 8%-12% correction towards $60,000. pic.twitter.com/hXwUkC13up
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
In its analysis, CryptoQuant postulates that Bitcoin price is currently below the vital level of $65,800, which is the trader’s on-chain realized price. This price indicator can act as a support level, signaling an impending drop if BTC price breaks it down.
According to CryptoQuant, every time the price of Bitcoin falls below the realized price on the chain, it undergoes a correction of 8-12%, which explains the $60,000 price target. Interestingly, the market leader’s on-chain metrics support this bearish projection.
As explained by CryptoQuant, trader demand for Bitcoin has continued to decline, as short-term holders are not purchasing BTC but rather decreasing their holdings. Meanwhile, demand from large investors (the whales) currently lacks the strength often associated with bullish momentum.
Furthermore, the liquidity of stablecoins is constantly declining, putting a strain on Bitcoin’s bull run. For example, the 60-day growth of Tether USD (USDT) market capitalization has slowed from $12.6 billion at the end of April to $3.7 billion now – the slowest growth rate since November 2023.
Of course, greater stablecoin liquidity is needed to kickstart price increases in the cryptocurrency market.
Bitcoin price in brief
At the time of this writing, the Bitcoin price continues to hover around $64,000, down 1.2% in the last 24 hours. In the last two weeks, the main cryptocurrency has lost value by almost 8%, according to CoinGecko data.
Featured image from iStock, chart from TradingView