The price of Bitcoin has seen a consistent decline over the past week, influenced by a series of economic and market developments. Data from CoinMarketCap indicates that the premier cryptocurrency is currently hovering around the $60,000 mark, having lost over 11.17% of its market value in the last seven days. While many crypto enthusiasts hope for a stabilization soon, CryptoQuant analyst abramchat has painted a more pessimistic picture, predicting that the market lead is likely to face further losses in the coming days.
In a Quicktake post on CryptoQuant, abramchat noted that amid the recent market downturn, Bitcoin has lost a crucial short-term support level at $64,580. This price point represents the average cost at which investors have purchased Bitcoin over the last six months. The breach of this level implies that the average investor is now potentially facing losses, which could result in increased selling pressure as investors move to cut their losses or avoid further financial pain.
According to abramchat, Bitcoin’s recent decline is linked to economic and political news that has adversely affected several financial markets, prominently the stock market, which posted significant losses on Thursday and Friday. The price drop may also be influenced by the actions of defunct crypto lender Genesis, which recently began repayments to creditors after filing for bankruptcy in January 2023. On Friday, Genesis offloaded $1.5 billion in Ethereum and Bitcoin to tackle its $4 billion debt.
Regarding Bitcoin’s future price trajectory, abramchat suggests that failure to reclaim the $64,580 support level could press Bitcoin down further, potentially to a range of $53,000 to $54,000, which represents the next significant support zone. These price levels were last observed in early July, following a massive sell-off prompted by the German government.
In addition, abramchat cautions investors against purchasing altcoins at this time. The analyst believes the current market “negativity” could severely impact other cryptocurrencies aside from Bitcoin.
As of this writing, Bitcoin is trading at $60,597, reflecting a 1.20% drop in the last 24 hours. Notably, the cryptocurrency dipped below the $60,000 mark on Saturday for the first time since mid-July. Bitcoin’s daily trading volume has decreased by 24.45%, indicating a low level of market interest and reduced buying and selling activities. Nonetheless, with a market cap of $1.19 trillion, Bitcoin remains the largest digital asset and the 9th largest global financial asset.
