Bitcoin's price has remained stagnant months after its ATH and is at risk of dropping below $60,000.
According to Rekt Capital, a price drop below $64,000 could be a healthy reset
Analyst Rekt Capital says that a price cluster sits at around $71,600, indicating a possible wave of potential downward pressure on Bitcoin's price.
CryptoQuant data also suggests that Bitcoin might move to exchanges for selling in the short—to medium-term.
Bitcoin continues to taunt investors, three months after its initial all-time high in March 2022.
As it stands, the cryptocurrency now hangs on a ledge around $65,000 and could be looking at a massive crash towards $60,000 with the slightest misstep from here.
However, according to an analyst in a recent post on X, a possible drop below $64,000—if it happens—might not be a bad thing after all.
In fact, it could even set the stage for the next and final stage of the Bitcoin bull market:
The Parabolic Phase.
Let’s go over why Bitcoin may (or may not crash).
When it comes to the world of crypto, price clusters typically refer to round numbers where the price of an asset tends to hover around—mostly because investors like to enter, exit or hold their positions around these price levels.
According to analysts' recent insights, Rekt Capital is an exciting price cluster that has firmed on Bitcoin around the $71,600 mark.
Considering how far under this price cluster Bitcoin is currently trading, we just might be seeing a downward continuation of its downward price action.
So far, Bitcoin is down by around 6% from its $71,500 range high on 7 June and might be revisiting the $60,000 zone soon.
In another tweet, Rekt Capital mentioned that Bitcoin dropping below $64,000 might not be so bad after all.
In fact, a drop below this price level can even serve as a healthy reset condition for the cryptocurrency, allowing it to fully enter the current cycle’s parabolic phase.
Rekt Capital says that Bitcoin has filled the Daily CME Gaps at approximately $64,000 and $62,500. However, its price remains far from immune to retesting these price levels once again, as the days go by.
It gets deeper.
According to CryptoQuant in one of its most recent insights, investors might be moving their crypto into exchanges at an alarming rate.
Bitcoin’s exchange inflows
CryptoQuant maintains that most of the Bitcoin being moved into exchanges has been inactive for around three to six months and up to a year, indicating that short—to medium-term investors might be responsible for the selling.
To sum up, while Bitcoin seems heavily poised for a recovery any day now, a price decline to $62,000 or even $60,000 remains possible, and investors might want to watch out for possible flash crashes.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.