CryptoQuant says bitcoin could fall to $60,000 as downturn worsens beyond 2022 bear market

On-chain analytics firm CryptoQuant has issued a stark warning regarding the immediate future of Bitcoin, projecting a potential drop to $60,000 if the current market downturn continues its trajectory. According to their latest analysis, the current crypto correction is exhibiting signs of worsening stress that surpass the intensity observed during the 2022 bear market cycle. CryptoQuant analysts pinpoint several crucial metrics underpinning this bearish outlook. Chief among these is the behavior of Bitcoin long-term holders (LTHs) and the lack of robust accumulation below the recent peak levels. Historically, significant price floors are established when LTHs halt selling and new accumulation begins aggressively. However, the firm notes that selling pressure remains elevated, indicating a lack of conviction among major players to defend current prices decisively. Furthermore, the analysis suggests that the realized price floor—a metric that tracks the average acquisition cost of all circulated coins—is being tested more severely than expected. While $60,000 remains a key psychological and technical support level, CryptoQuant believes that fundamental on-chain dynamics, coupled with ongoing macroeconomic uncertainty and miner distress, point toward a test of this floor. Should this critical threshold be breached, the report warns of potential cascade effects, significantly worsening the market structure and potentially pushing prices into the mid-$50,000 range. The deepening stress, characterized by larger liquidation clusters and persistent outflows from high-net-worth investors, signals that the market structure has deteriorated more severely than the consolidation phase seen following the FTX collapse in 2022.

Source: CryptoQuant says bitcoin could fall to $60,000 as downturn worsens beyond 2022 bear market