CryptoQuant's latest report highlights concerning signals for the Bitcoin market, suggesting a potential 8-12% price correction towards the $60,000 level.

The report notes that Bitcoin is currently trading below the critical $65,800 support level, which has historically acted as an important on-chain realized price for traders. Falling below this threshold often precedes an 8-12% decline in the Bitcoin price.

The analysis also points to waning demand from large investors (whales) and a slowdown in stablecoin liquidity growth, which has historically been a key driver of Bitcoin price rallies. The 60-day growth in Tether's (USDT) market capitalization has slowed to $3.7 billion, the slowest pace since November 2023.

While the long-term outlook remains bullish according to CryptoQuant's Bull-Bear Market Cycle indicator, the current market dynamics suggest a potential consolidation phase before any significant upside momentum.

Traders will be closely watching to see if the $65,800 support level can hold, as a break below this threshold could pave the way for a deeper correction towards the $60,000 mark.