Bitcoin Loses Crucial Support, Poised For Return To $54,000 – Analyst

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As a seasoned researcher with over a decade of experience in the financial markets, I have witnessed numerous bull and bear runs. However, the current state of Bitcoin leaves me somewhat apprehensive. The consistent decline over the past week, coupled with the failure to reclaim the crucial support level at $64,580, paints a bleak picture for the near future.

Over the past week, the price of Bitcoin has been steadily dropping due to various economic and market events. As per information from CoinMarketCap, the primary cryptocurrency is now hovering near the $60,000 range, marking a 11.17% decrease in its market value within the last seven days. While some crypto supporters may wish for Bitcoin to regain stability soon, CryptoQuant analyst abramchat has suggested that the opposite might occur, hinting at potential further losses in the near future.

Bitcoin Price Far From Recovery? 

In a recent Quicktake post on CryptoQuant, it was noted by abramchat that due to the current market slump, Bitcoin has dropped below a significant short-term support level at approximately $64,580. This price point represents the average cost at which investors have bought Bitcoin over the past six months. This decline suggests that many investors are currently facing losses, potentially leading to increased selling pressure as they either try to minimize their existing losses or prevent further ones.

Based on Abramchat’s analysis, the recent drop in Bitcoin’s price seems to be connected to unfavorable economic and political updates that have significantly affected various financial sectors, notably the stock market, which suffered substantial losses on both Thursday and Friday.

The decline in Bitcoin’s price might also be attributed to the fact that Genesis, a failed crypto lender, started making repayments to its creditors following its bankruptcy declaration in January 2023. On Friday, Genesis transferred approximately $1.5 billion worth of Ethereum and Bitcoin as they work towards settling their debt, which amounts to around $4 billion.

Regarding Bitcoin’s potential price movement, Abramchart indicates that if the digital currency doesn’t manage to surpass its previous support level of $64,580, a possible drop towards approximately $53,000 – $54,000 might occur. This area is considered a significant support zone. Interestingly, these lower price ranges were last observed in early July, shortly after the significant market sell-off triggered by the German government.

Additionally, Abramchart advises investors to exercise caution when investing in alternative cryptocurrencies right now. The analyst predicts that the prevailing negative sentiment in the market may have a substantial detrimental impact not only on Bitcoin but also on other altcoins.

BTC Price Overview

Right now, as I’m typing this, Bitcoin is being traded at approximately $60,597. This is a 1.20% decrease from its value the previous day. Interestingly, this marks the first time since mid-July that the leading cryptocurrency has dropped below $60,000, which happened on Saturday.

At present, Bitcoin’s daily trading activity has decreased by 24.45%, suggesting reduced investor enthusiasm due to fewer purchases and sales. Nevertheless, with a market capitalization of $1.19 trillion, Bitcoin continues to be the most significant digital currency and ranks as the 9th largest financial asset globally.

Bitcoin Loses Crucial Support, Poised For Return To $54,000 – Analyst

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2024-08-04 17:46