CryptoQuant analysts say Bitcoin has fallen from a key price support. In this context, analysts state that the developments have led to BTC potentially falling in price towards $60,000. Meanwhile, institutional interest in the leading cryptocurrency is waning. Bitcoin investment products saw weekly outflows of $621 million.
“Bitcoin has fallen below the key support level, more to come!”
Bitcoin has lost a critical support, CryptoQuant analysts wrote in a report published on Tuesday. Analysts assess that this could indicate an 8%-12% correction. In this context, analysts say, “Since BTC price exceeds this benchmark on the downside, Bitcoin may fall towards $60,000. “BTC price has fallen below $65,800, which is an important support level in bull markets,” they say.
However, Tuesday’s CryptoQuant market report noted that despite Bitcoin falling below this key level, downside pressure may be limited. However, he also underlined that “the market lacks bullish momentum.” CryptoQuant analysts added that traders still have not increased their BTC holdings and demand growth from whales remains weak. Additionally, stablecoin liquidity continued to slow, increasing at the slowest pace since November 2023.
Key factors contributing to Bitcoin’s decline
According to the opinion of an IT tech expert published on CryptoQuant, there are currently three key factors contributing to BTC’s decline.
- Miner Revenues and Selling Pressure: Miner revenues dropped by 55%, forcing miners to sell more Bitcoin to cover their costs. As a result, more Bitcoin is moved from miners’ wallets to exchanges, putting downward pressure on prices.
- Money Outflow and Selling Pressure from ETFs: Significant withdrawals from major ETFs such as Fidelity and Grayscale increase selling pressure on Bitcoin.
- Recession in the Stablecoin Market: The stablecoin market is not seeing new issuances, leading to reduced liquidity in the crypto market. The lack of new money entering the market increases price volatility.
BTC hits one-month low amid market sell-off
cryptokoin.comAs you follow from , Bitcoin has fallen to a one-month low as significant outflows from digital asset investment products and concerns about prolonged high US borrowing costs impact the cryptocurrency market. BTC dropped to the $64,000 mark on June 18, reaching a level last seen in mid-May. After this, it showed a slight recovery and traded at $64,858. This decline showed that Bitcoin had fallen to a key support level of the 50-day moving average. It also pointed to a short-term downtrend in the crypto market.
In the second quarter, traditional asset classes such as stocks and bonds delivered better returns than Bitcoin, which fell about 5%. According to Bloomberg, global equities, fixed income and commodities have outperformed Bitcoin, underscoring a potential slowdown in the cryptocurrency market. According to the latest CoinShares Weekly Wealth Fund Flows report, there was a weekly outflow of $621 million from Bitcoin investment products, while there was a weekly inflow of $1.8 million into short Bitcoin funds. The report attributed the outflows to the Fed’s unexpectedly hawkish stance. This suggests that high interest rates will be maintained for longer and capital will move away from fixed-supply assets such as Bitcoin.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!