Bitcoin has been on a downward slide for the past week, and things don’t look good for the crypto king.
A Vital Support Level Lost
An analyst at CryptoQuant, abramchat, says Bitcoin has lost a crucial support level at $64,580. This means that many investors who bought Bitcoin in the last six months are now underwater, which could lead to more selling pressure as they try to cut their losses.
What’s Driving the Drop?
The recent market downturn is partly blamed on economic and political news, which have been hitting the stock market hard. Plus, the collapse of crypto lender Genesis is adding to the pressure. Genesis is starting to repay creditors, but they’re offloading billions of dollars in Bitcoin and Ethereum to do it.
A Bleak Outlook
abramchat believes that if Bitcoin can’t regain the $64,580 support level, it could plummet to the $53,000 – $54,000 range. This would be a significant drop, and it’s a level we haven’t seen since early July.
Caution for Altcoins
abramchat also warns investors to be careful about buying altcoins right now. He thinks the current market negativity could hurt other cryptocurrencies even more than Bitcoin.
Bitcoin’s Current State
Bitcoin is currently trading at around $60,000, but it dipped below $60,000 for the first time since mid-July. Trading volume is also down, which shows that people aren’t buying or selling as much. Despite the recent dip, Bitcoin is still the biggest cryptocurrency and the 9th largest financial asset in the world.
