According to on-chain data, the downside risk for Bitcoin ($BTC) is not over yet. The data suggests that Bitcoin’s base price is near $55,000.
In a recent analysis, Glassnode stated that Bitcoin’s on-chain price floor could be around $54,900.
The analysis firm stated that $BTC entered a correction phase after falling from $79,000 in January and is currently consolidating within the 2024 support range between $60,000 and $69,000, a region that is being protected by medium-term investors.
However, according to Glassnode, a break below this support line could see the price fall to the realized price of $54,900. Realized Price is an on-chain indicator that shows the average purchase price of market participants.
Glassnode also added that exchange inflows have decreased, but Bitcoins continue to be transferred to long-term investor addresses, which reduces the circulating supply in the market.
Besides Glassnode, analyst Nic Puckrin also said that Bitcoin is in decline and that further declines are highly likely.
At this point, analyst Nic Puckrin warned that the $BTC price could fall to $55,000. According to the analyst, spot trading is at its lowest level since 2023, and unless interest rates fall, the dollar weakens, and large ETF inflows occur, a deeper wave of selling could be imminent.
*This is not investment advice.
