The Bitcoin price has been on a downward spiral, and on-chain data suggests that the correction may not be over yet. Despite stabilizing around $65,500, analysts predict a further drop to $60,000. Over the past two weeks, whales have sold a staggering $1.2 billion worth of Bitcoin through brokers, while Bitcoin ETF outflows have reached $460 million. This sell-side liquidity needs to be absorbed to prevent further price drops.

According to Julio Moreno, Head of Research at CryptoQuant, Bitcoin has fallen below its short-term support levels, indicating a potential decline to $60,000. The analyst highlights that key demand dynamics, such as large trader and investor buying, US investor interest, and stablecoin liquidity, lack momentum. Rekt Capital notes that Bitcoin tends to form price action clusters near the $71,600 resistance, leading to retracements to $60,600.

Willy Woo, another prominent Bitcoin analyst, points out that there is still significant open interest in Bitcoin futures bets, indicating a need for substantial liquidations before the price can rise again. On-chain indicators suggest that the Bitcoin price needs to clear some froth before a decisive rally can occur.

Bitcoin miners have also been selling heavily, realizing $550 million in profits between $62,000 and $70,000. Long-term whales have sold $1.2 billion worth of Bitcoin in the last two weeks, and if this sell-side liquidity isn't absorbed, it could lead to further price drops. Ki Young Ju warns that if this liquidity isn't absorbed over-the-counter, brokers may deposit Bitcoins to exchanges, causing a further downside.

In conclusion, the Bitcoin price correction may not be over yet, and on-chain data suggests a potential drop to $60,000. With whales selling off significant amounts of Bitcoin and miners covering operational costs, the price needs to clear some froth before a decisive rally can occur. As the market continues to evolve, it remains to be seen how Bitcoin will respond to these challenges.