CryptoQuant: bitcoin may fall to $ 60,000

According to the analysis of blockchain data, bitcoinis approaching the level of the «realized price» of short-term holders, which has historically been an important indicator for the flagship cryptocurrency. The realized price reflects the average price at which investors purchased their coins. When the market price is higher than this indicator, average investors make a profit, and when it is lower, they suffer losses.

CryptoQuant’s chief researcher Julio Moreno notes that the value of the main crypto asset is now close to the realized price of short-term holders (purchases within the last 155 days). This means that although these investors still have a profit, it is small. If the downward trend continues, this level may be retested.

The chart shows that in the past, the price of bitcoin has twice found support at this level and bounced back upwards, sustaining growth. However, on other occasions (marked in red), bitcoin was unable to hold this level and suffered a drop of 8−12%. The last such case was in late April and early May.

If the level is not held this time, according to Moreno, the price could fall to around $ 60,000. At the time of writing, BTC is trading at around $ 65,700, down more than 6% over the past week and almost 1% overnight.