Bitcoin has been under intense selling pressure for the past two weeks, currently trading at around $65,500. However, on-chain data suggests that the correction may not be over yet, indicating a potential drop to $60,000 before a trend reversal can occur.

According to Julio Moreno, Head of Research at CryptoQuant, Bitcoin's price has fallen below its short-term support levels based on its on-chain realized price. This suggests a further decline to $60,000 may be imminent. Moreno also noted a lack of momentum in key demand dynamics, including large trader and investor buying, US investor interest, and stablecoin liquidity.

Rekt Capital, another crypto analyst, observed that Bitcoin's price tends to form clusters near the Range High resistance around $71,600, leading to a price retracement to the downside and clustering near the Range Low support area of around $60,600. Willy Woo, a Bitcoin analyst, highlighted a significant open interest in Bitcoin futures bets, indicating a need for substantial liquidations before the price can resume its upward trajectory.

The data suggests that there is still some froth in the Bitcoin price that needs to be cleared before a decisive rally can occur. Moreover, Bitcoin miners have been selling heavily to cover operational costs, realizing $550 million in profits between $62,000 and $70,000. Long-term whales have also sold $1.2 billion worth of BTC in the last two weeks, while Bitcoin ETF outflows have surged to $460 million.

In conclusion, on-chain indicators suggest that Bitcoin's price correction may not be over yet, with a potential drop to $60,000 on the horizon. The lack of momentum in demand dynamics and significant selling pressure from miners and long-term whales may need to be absorbed before the price can resume its upward trend.