Despite exuding much promise and optimism, the past week’s performance of Bitcoin, the leading luminary among a crowded constellation of cryptocurrencies, ended up being more of a tame whimper than a triumphant roar. Its struggle to maintain its meteoric rise cast an underwhelming shadow across the broader crypto market, a disappointment reflected in many its large-cap asset counterparts, which registered significant losses.
The road ahead doesn’t look too smooth either. Recent trends in price action hint at stormy weather ahead for the apex cryptocurrency, foretelling a potential slide downwards in the forthcoming days.
Intriguing insights from a recent analysis by blockchain intelligence firm CryptoQuant paint a sobering picture for Bitcoin. The firm’s examination of Bitcoin’s recent market behavior suggests a precarious journey towards the $60,000 mark after it lost considerable support.
This past Tuesday, June 18 saw Bitcoin plunging below the $65,000 threshold for the first time in over thirty days. Though the pioneer cryptocurrency clawed back some respectability to settle at around $66,000 by Thursday, the tides of a bearish market proved too strong, dragging Bitcoin down to a low of $63,500 by the end of the business week on Friday, June 21.
CryptoQuant’s analysis points out the rocky road that Bitcoin’s price currently treads. Presently wandering under the crucial $65,800 mark, which is considered as the trader’s on-chain realized price, the floundering cryptocurrency is emitting signals of an impending downfall if it dips any lower.
Historical data underscores CryptoQuant’s somewhat dismal projections. Every time Bitcoin dips beneath the on-chain realized price, it triggers an 8-12% correction, reinforcing the $60,000 target. Adding to this gloomy narrative, the fading on-chain metrics are reflective of an increasingly bearish market.
Trading patterns evidence a shrinking demand for Bitcoin among traders. Instead of fueling Bitcoin’s demand by adding to their existing stock, short-term holders are witnessed to be more keen on trimming down their holdings. The buying spree usually associated with large-scale investors, colloquially named ‘whales’, is noticeable by its absence, indicating a tepid response from even this usually bullish group.
Further throttling Bitcoin’s bull run is the steady fall in stablecoin liquidity. For instance, over the past 60 days, the market capitalization of Tether USD (USDT) plunged from a robust $12.6 billion in late April to a modest $3.7 billion. This is the slowest pace of growth since November 2023.
Amplified liquidity in stablecoins is a vital prerequisite to ignite price rallies in the crypto market. Currently though, the wind in Bitcoin’s sails is waning.
Drilling down to the real-time state of affairs, at the time of writing, Bitcoin’s price is idling around the $64,000 mark with a decrease of 1.2% in the last 24 hours. The prime crypto asset has seen its value erode by nearly 8% in the past two weeks, validating projections mapped out by data from CoinGecko.
