Bitcoin Loses Crucial Support, Poised For Return To $54,000 - Analyst.
The price of Bitcoin has maintained a consistent decline over the past week following several economic and market developments. According to data from CoinMarketCap, the premier cryptocurrency currently hovers around the $60,000 price zone, having lost over 11.17% of its market value in the last seven days. As many crypto enthusiasts may hope Bitcoin finds some stability soon, CryptoQuant analyst abramchat has predicted a reverse scenario, indicating the crypto market leader may experience more losses in the coming days.
Bitcoin Price Far From Recovery?
In a Quicktake post on CryptoQuant,
abramchat stated that amidst the recent market downturn, Bitcoin has now
lost a vital short-term support at the
$64,580 price mark, which represents the
average price at which investors have
purchased Bitcoin over the last six months. Such development implies that
the average investor is likely currently
underwater which can lead to an increased selling pressure in a cut their losses or avoid further losses.
According to abramchat, Bitcoin's recent price fall can be attributed to economic and political news which have negatively impacted several financial markets prominently the stock market which recorded significant losses on Thursday and Friday.
Bitcoin's price drop is also likely influenced by defunct crypto lender Genesis finally commencing repayments to creditors after declaring bankruptcy in January 2023. On Friday, Genesis transferred out $1.5 billion in Ethereum and Bitcoin as they aim to offload $4 billion in debt.
Commenting on Bitcoin's future price
trajectory, abramchart states that the
failure of the digital asset to reclaim the
support level of $64,580 will likely result in a further decline to around $53,000_
$54,000 which represents the next
significant support zone. However, such
low price levels were recently seen in
early July, following the massive market
sell-off by the German government.