32 C
Sunday, July 14, 2024
BitcoinBitcoin Faces Warning Signals Latest CryptoQuant Analysis Predicts Potential 12 Decline

Bitcoin Faces Warning Signals Latest CryptoQuant Analysis Predicts Potential 12 Decline

- Advertisement -spot_imgspot_img
- Advertisement -spot_imgspot_img

CryptoQuant’s most recent report provides valuable insights into the current state of Bitcoin and its potential implications for the market. This article explores the key findings of the report and their significance for the future of Bitcoin.

Bitcoin is currently trading below the critical support level of $65.8K and has dropped below $64K. This fall below the threshold suggests a potential correction of 8%-12% towards $60K.

The recent dip in price is a crucial moment for Bitcoin as it signifies a significant milestone for the cryptocurrency. It is currently trading under $64K, and historically, this threshold has indicated potential market corrections. Predictions now indicate an 8%-12% decline, with a potential bottoming out near $60K.

This price movement is particularly important as it aligns with the trader’s on-chain realized price, a reliable indicator that has previously acted as both support and resistance.

While Bitcoin remains tied to key support levels, trader behavior and stablecoin supply, which are essential determinants of market sentiment, both indicate investor caution. Few whales, who are significant Bitcoin holders capable of influencing the market, appear to be buying much.

Additionally, stablecoin liquidity, a major driver behind price rallies, has experienced the smallest increase since November 2023. This slowdown is in stark contrast to previous quarters, where strong demand from U.S. investors fueled the market. However, these investors are now hesitant to make further investments.

In terms of indicators and long-term outlook, the CryptoQuant’s full Bull-seven stages Bear Market Cycle suggests that Bitcoin is still in a long-term Bull market cycle. However, it currently lacks momentum and would require impactful news to become bullish.

For instance, this indicator is currently at its lowest level since October 2023 and would need to surpass its 30-day moving average to indicate strong bullish momentum.

Tags: BTC

- Advertisement -spot_imgspot_img
Latest news
- Advertisement -spot_img
Related news
- Advertisement -spot_img


Please enter your comment!
Please enter your name here