The recent performance of Bitcoin has not been favorable, as the leading cryptocurrency struggled in the market along with other large-cap assets, resulting in significant losses overall. The price action data indicates that Bitcoin may still face further downside in the coming days.
According to a report by blockchain intelligence firm CryptoQuant, Bitcoin could potentially reach the $60,000 price mark after losing a crucial support level. The premier cryptocurrency fell below $65,000 on June 18 for the first time in over a month but quickly rebounded to $66,000 by Thursday. However, it dropped to $63,500 on Friday, June 21, succumbing to bearish pressure.
CryptoQuant’s analysis suggests that Bitcoin is currently below the important $65,800 level, which acts as a support level indicating a possible decline if the price falls below it. The firm predicts an 8-12% correction every time Bitcoin crosses below this on-chain realized price, leading to the $60,000 price target. The decreasing demand from short-term holders and weakening on-chain metrics support this bearish projection.
Moreover, the decline in stablecoin liquidity has also impacted the Bitcoin bull run, as the growth rate of Tether USD’s market capitalization has slowed down significantly. Higher stablecoin liquidity is crucial for initiating price rallies in the cryptocurrency market.
As of now, Bitcoin is trading around $64,000 with a 1.2% decline in the last 24 hours and an 8% decrease in the past two weeks. The continuous monitoring of price charts and on-chain movements is essential to understand the complexities of the blockchain technology and cryptocurrency market.
In conclusion, it is important to conduct thorough research and analysis before making any investment decisions in the volatile cryptocurrency market. The insights and information provided are for educational purposes only, and investing in cryptocurrencies carries inherent risks that individuals should be aware of. Stay informed and updated on the latest trends to navigate the crypto market effectively.