Bitcoin’s price has maintained a consistent decline over the past week following several economic and market developments. According to data from CoinMarketCap, the leading cryptocurrency is currently hovering around the $60,000 price zone, having lost over 11.17% of its market value in the past seven days. While many crypto enthusiasts may expect Bitcoin to find some stability soon, CryptoQuant analyst Abramchat has predicted the opposite scenario, indicating that the crypto market leader could suffer further losses in the coming days.
Bitcoin Price Far From Recovery?
On a Quick post On CryptoQuant, abramchat stated that amid 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 purchased Bitcoin over the past six months. Such a development implies that the average investor is likely currently underwater, which could lead to increased selling pressure, cutting their losses or avoiding further losses.
According to abramchat, the recent drop in Bitcoin’s price can be attributed to economic and political news that negatively impacted several financial markets, with emphasis on 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 starting refunds to creditors after filing for bankruptcy in January 2023. On Friday, Genesis transferred $1.5 billion in Ethereum and Bitcoin in order to get rid of $4 billion in debt.
Commenting on Bitcoin’s future price trajectory, abramchart states that the digital asset’s failure to reclaim the $64,580 support level 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 most recently seen in early July following the German government’s massive market sell-off.
Furthermore, abramchart warned investors to be cautious about buying altcoins at the moment. The analyst believes that the current “negativity” in the market could produce a significant deleterious effect on coins other than Bitcoin.
BTC Price Overview
At the time of writing, Bitcoin was trading at $60,597, following a 1.20% drop over the past day. Notably, the leading cryptocurrency fell below the $60,000 mark on Saturday for the first time since mid-July.
Currently, Bitcoin’s daily trading volume has also dropped by 24.45%, indicating low interest due to reduced buying and selling activity. However, with a market cap of $1.19 trillion, Bitcoin remains the largest digital asset and the ninth largest financial asset globally.
