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

CryptoQuant indicates that Bitcoin might decline towards $60,000 because on-chain data suggests the current downturn is worsening beyond the early stages of the 2022 bear market. The firm's Bull Score Index has hit zero, the lowest possible reading, following an October liquidation event. Key support levels are identified between $70,000 and $60,000, with the lower end potentially taking months to reach, encompassing the previous cycle's all-time high of $69,000 and production costs around $65,000–$70,000, according to Julio Moreno, head of research. This bearish outlook is supported by "broad structural weakness," evidenced by institutional demand reversing, with U.S. spot Bitcoin ETFs turning into net sellers after being net buyers last year. Furthermore, retail participation remains subdued, indicated by a sustained negative Coinbase premium, and liquidity is tightening as Tether's USDT market cap contracts for the first time since October 2023. Long-term demand growth has also collapsed by 93% over four months, and Bitcoin has fallen below its 365-day moving average, performing worse than it did in the initial 83 days of the 2022 bear market.

(Source：The Block)