The price of Bitcoin has been falling consistently over the past week due to various economic and market developments. According to data from CoinMarketCap, the leading cryptocurrency is currently hovering around the $60,000 price zone, having lost more than 11.17% of its market value over the past seven days. As many crypto enthusiasts may be hoping that Bitcoin will find some stability soon, CryptoQuant analyst Abramchat has predicted a reverse scenario, indicating that 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 amid the recent market decline, Bitcoin has now lost crucial short-term support at the price of $64,580, which represents the average price at which investors have purchased Bitcoin over the past six months. Such a development means that the average investor is likely currently underwater, which could lead to increased selling pressure and thus limit their losses or prevent further losses.
According to Abramchat, Bitcoin’s recent price drop can be attributed to economic and political news that has negatively impacted various financial markets, especially the stock market which significant losses on Thursday and Friday.
Bitcoin’s price drop is also likely influenced by defunct cryptocurrency lender Genesis finally started refunds to creditors after declaring bankruptcy in January 2023. On Friday, Genesis transferred $1.5 billion to Ethereum and Bitcoin as they aim to pay off $4 billion in debt.
Commenting on Bitcoin’s future price trajectory, abramchart states that the digital asset’s inability to reclaim the $64,580 support level will likely result in a further decline to around $53,000 – $54,000, which represents the next major support zone. However, such low price levels were recently observed in early July, following the massive market sell-off by the German government.
Furthermore, abramchart has warned investors to be cautious about buying altcoins at this time. The analyst believes that the current ‘negativity’ in the market could have a significantly damaging effect on coins other than Bitcoin.
BTC price overview
At the time of writing, Bitcoin is trading at $60,597, having fallen 1.20% over the past day. It is striking that the most important 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 low 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 global financial asset.