Bitcoin has been experiencing a steady decline in recent weeks, with its price hovering around $65,500. However, on-chain data suggests that this correction might not be over yet, and it could take a significant drop to $60,000 before the price reverses its trend.

Bitcoin's Price May Fall to $60,000

Julio Moreno, the Head of Research at CryptoQuant, believes that the Bitcoin price has fallen below its short-term support levels. He suggests that the price could continue to decline to $60,000. Moreno highlights that key demand dynamics, such as large traders and investors buying, interest from US investors, and stablecoin liquidity, are currently lacking momentum.

Price Clusters and Retractions

Rekt Capital, another analyst, notes that the Bitcoin price tends to form clusters near the Range High resistance around $71,600. Over time, this leads to a price retracement to the downside, resulting in clusters near the Range Low support area of $60,600.

Open Interest and Liquidations

Willy Woo, a Bitcoin analyst, points out that there is still significant open interest in Bitcoin futures bets. He suggests that substantial liquidations are necessary before Bitcoin can resume its upward journey. This indicates that there is still some froth in the Bitcoin price that needs to be cleared before a decisive rally can begin.

Miners and Whales Selling

Bitcoin miners have been selling large quantities of Bitcoin to cover operational costs, especially after the halving event in April. They have realized $550 million in profits this year at prices between $62,000 and $70,000. Long-term whales have also sold $1.2 billion worth of Bitcoin in the past two weeks, likely through brokers. Additionally, Bitcoin ETF outflows have skyrocketed to $460 million during the same period. If the $1.6 billion in sell-side liquidity is not absorbed over-the-counter, brokers could start depositing Bitcoin to exchanges, leading to further market volatility.