Bitcoin prices have been dropping consistently over the past week in response to several economic and market trends. According to data from CoinMarketCap, the leading cryptocurrency is currently hovering in the $60,000 price range, losing over 11.17% of its market value over the past seven days. While many crypto enthusiasts might be hoping for Bitcoin to stabilize soon, analyst abramchat from CryptoQuant predicts the opposite scenario, indicating that the cryptocurrency market leader may experience further losses in the coming days.
Is Bitcoin price far from recovering?
in Quick Take Post At CryptoQuant, abramchat noted that the recent market downturn has caused Bitcoin to lose the now crucial short-term support at the $64,580 price level, which represents the average price at which investors purchased Bitcoin over the past six months. Such developments suggest that the average investor is likely now experiencing losses, which could lead to increased selling pressure in an attempt to cut losses or avoid further losses.
According to Abramchat, Bitcoin’s recent price drop can be attributed to economic and political news that has had a negative impact on several financial markets. In particular, the stock market has hit record highs, Big Losses on Thursday and Friday.
Bitcoin’s price drop is also likely influenced by the collapse of cryptocurrency lending firm Genesis It finally begins Genesis plans to repay creditors after declaring bankruptcy in January 2023. On Friday, Genesis transferred $1.5 billion worth of Ethereum and Bitcoin in an effort to reduce its $4 billion debt.
Regarding Bitcoin’s future price trajectory, abranchart said that if the digital asset fails to recover the $64,580 support level, it is likely to fall further to the next key support zone near $53,000-$54,000, although such low price levels were recently seen in early July following a massive market sell-off by the German government.
Additionally, Avramchart has warned investors to be cautious about buying altcoins at this time, as the analyst believes that the current market “negativity” could have a significant negative impact on coins other than Bitcoin.
BTC Price Overview
At the time of writing, Bitcoin is trading at $60,597 following a 1.20% drop the previous 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 is also down 24.45%, indicating less interest due to reduced buying and selling activity. However, with a market capitalization of $1.19 trillion, Bitcoin remains the largest digital asset and the ninth largest financial asset in the world.
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