CryptoQuant has released a new report that sheds light on Bitcoin’s current uncertain position and its potential impact on the market. This article explores the key findings of the report and their significance for Bitcoin’s future.
is currently trading below the critical support level of $65.8K, now sitting at less than $64K. Falling below this threshold suggests a possible 812% correction towards $60K.
Recent developments in Bitcoin’s price movement are significant as they align with on-chain realized price, an indicator that has acted as both support and resistance in the market.
Despite remaining tied to key support levels, trader behavior and stablecoin supply – two crucial determinants market sentiment – indicate investor caution. There has been minimal whale activity (large Bitcoin holders capable of influencing markets), suggesting limited buying by influential players. Additionally, stablecoin liquidity, a major driver behind price rallies, has experienced its smallest increase since November 2023 due to reduced demand from U.S. investors who are refraining from further investment.
In terms of long-term outlook, while there may be short-term declines, CryptoQuant’s full Bull-seven stages Bear Market Cycle indicates that Bitcoin remains a long-term bull market cycle but lacks momentum currently and would require impactful news to become bullish.
For example, one indicator is at its lowest level since October 2023 and would need to exceed its 30-day moving average to demonstrate robust bullish momentum.