CryptoQuant: These Levels Are Now in the Cards for Bitcoin!

CryptoQuant analysts say Bitcoin has fallen from a valuable price base. In this context, analysts state that the developments have led to BTC potentially falling in price towards $60,000. Meanwhile, institutional interest in the leading cryptocurrency is waning. Bitcoin investment products saw weekly outflows of $621 million.

“ Bitcoin has fallen below the key reinforcement level, more to come!”

CryptoQuant analysts wrote in a report published on Tuesday that Bitcoin has lost a critical support. Analysts estimate that this could indicate an 8%-12% correction. In this context, analysts say, “Since the BTC price exceeds this benchmark in the downward direction, Bitcoin may fall towards $ 60,000. “BTC price has fallen below $65,800, which is an important reinforcement level in bull markets,” they say.

However, Tuesday’s CryptoQuant market report noted that even if Bitcoin falls below this key level, the downside pressure may be limited. However, he also underlined that “the market lacks bullish momentum.” CryptoQuant analysts added that traders still have not increased their BTC holdings and demand growth from whales remains weak. Additionally, stablecoin liquidity continued to slow, increasing at the slowest pace since November 2023.

Key factors contributing to Bitcoin’s decline

According to the opinion of an IT tech expert published on CryptoQuant, there are currently three main factors contributing to BTC’s decline.

• Miner Revenues and Selling Pressure : Miner revenues dropped by 55%, forcing miners to sell more Bitcoin to cover their costs. As a result, more Bitcoin is moved from miners’ wallets to exchanges, putting downward pressure on prices.
• Money Outflow and Selling Pressure from ETFs: Significant withdrawals of money from major ETFs such as Fidelity and Grayscale increase the selling pressure on Bitcoin.
• Calm in the Stablecoin Market: The stablecoin market is not seeing new issuances, leading to reduced liquidity in the crypto market. The lack of new money entering the market increases price volatility.

BTC hits one-month low amid market sell-off

cryptokoin.com As you follow from , Bitcoin fell to its lowest level in a month as significant outflows from digital asset investment products and concerns about long-term high US borrowing costs affected the cryptocurrency market. BTC dropped to $64,000 on June 18, reaching a level last seen in mid-May. Following this, it showed a slight recovery and traded at $64,858. This decline showed that Bitcoin had fallen to a valuable support level of the 50-day moving average. Additionally, it pointed to a short-term downtrend in the crypto market.

Bitcoin fell below its 50-day moving average. Source Bloomberg

In the second quarter, classic asset classes such as stocks and bonds delivered more favorable returns than Bitcoin, which fell about 5%. According to Bloomberg, global equities, fixed income and commodities have outperformed Bitcoin, highlighting a potential slowdown in the cryptocurrency market. According to the latest CoinShares Weekly Wealth Fund Flows report, there was a weekly outflow of $621 million from Bitcoin investment products, while there was a weekly inflow of $1.8 million into short Bitcoin funds. The report attributed the outflows to the Fed’s unexpectedly hawkish stance. This suggests that high interest rates will be maintained for a longer period of time and capital will move away from fixed supply assets such as Bitcoin.