Bitcoin has faced a challenging week, struggling to maintain momentum around the key $90,000 level. After appearing poised to reclaim a six-figure valuation just over a week ago, the cryptocurrency has lost its bullish steam. These recent difficulties align more with the current bear market structure than with temporary relief rallies. However, new on-chain analysis suggests Bitcoin’s price troubles may deepen from here.
In a recent post on X, Alphractal CEO and founder Joao Wedson indicated that Bitcoin could still fall below $60,000. This cautious outlook is based on the number of days Bitcoin has traded above its current price.
Wedson points to the “Days Spent at a Profit” metric, which tracks historical periods when Bitcoin’s price was higher than it is now. Currently, there have been 355 such days. Historically, this metric tends to rise during bear markets or prolonged sideways trends, signaling that many investors are holding Bitcoin at a loss.
Wedson notes that this metric reached around 775 days as Bitcoin approached past market bottoms. The current reading of 355 days suggests the cryptocurrency is still far from the extreme levels typically seen at bear market lows. This implies Bitcoin could remain under pressure for an extended period, potentially declining further over the next 300 days.
According to Alphractal, this prolonged downturn could push Bitcoin back to $60,000, potentially triggering significant liquidations among both retail and institutional investors who entered the market after the ETF approvals.
As of now, Bitcoin is trading around $89,900, showing little change over the past 24 hours. However, it is down more than 5% over the past week and remains nearly 30% below its all-time high of $126,080.
Frequently Asked Questions
FAQs Bitcoin Price the Potential Drop Below 60000
BeginnerLevel Questions
1 Why is a CEO saying Bitcoin could drop below 60000
A cryptocurrency CEO is likely analyzing current market trends such as increased selling pressure low trading volume or negative macroeconomic news and believes these factors could push the price down
2 What does it mean when Bitcoins price drops
It simply means that the value of 1 Bitcoin compared to a currency like the US Dollar is decreasing If you bought at a higher price your Bitcoin would be worth less money at that moment
3 Should I panic and sell my Bitcoin if I hear this
Not necessarily Price predictions are opinions not certainties Panic selling often leads to losses Its better to review your own investment strategy and risk tolerance rather than reacting to a single headline
4 Has Bitcoin dropped this low before
Yes Bitcoin is known for its volatility It has experienced many significant price drops throughout its history often followed by periods of new highs
5 What are common reasons Bitcoins price falls
Common reasons include large investors selling negative regulatory news global economic uncertainty market panic or a slowdown in new money entering the crypto market
Advanced Practical Questions
6 What specific indicators might this CEO be looking at
They might be analyzing onchain data the strength of support levels around 60K derivatives market funding rates or broader financial indicators like the DXY
7 Is 60000 a critical support level for Bitcoin
Yes for many analysts 60000 has acted as a major psychological and technical support level A sustained break below it could trigger further automated selling and shift market sentiment to more bearish
8 How does traditional finance impact Bitcoins price right now
Factors like Federal Reserve interest rate decisions inflation data and stock market performance heavily influence investor sentiment Riskoff environments often lead investors to pull money from volatile assets like Bitcoin
9 If it drops below 60K whats the next major support area
Analysts often look at the next significant support zone around