Bitcoin’s Hold on $60,000 Looks Shaky as Data Warns of Further Plunge

▲ Bitcoin (BTC) / ChatGPT-generated image

Bitcoin (BTC) has fallen below the key psychological support level of $63,000. In response, on-chain data analytics firms and market research institutions have simultaneously warned of structural weakness in the market.

According to crypto-focused media outlet CoinGape on February 24 (local time), blockchain analytics firm Glassnode and 10x Research analyzed that deepening demand gaps in the Bitcoin market could lead to a more severe correction in price. Glassnode noted that Bitcoin has dropped below the True Market Mean of $79,000, which represents the average acquisition price of active investors, signaling a sharp deterioration in market strength. The market currently lacks meaningful buying momentum to defend against downward pressure, and if the $60,000 support level collapses, selling pressure is expected to intensify further.

Markus Thielen, CEO of 10x Research, assessed that the digital asset market is transitioning beyond a simple correction into a full-fledged bear market. Thielen warned that slowing inflows into U.S. spot Bitcoin ETFs and growing fatigue among institutional investors could push Bitcoin’s price down to its realized price level of around $55,000. In particular, he pointed out that amid ongoing macroeconomic uncertainty, Bitcoin’s narrative as “digital gold” is losing strength, further fueling the price decline.

On-chain indicators are also flashing ominous signals. The Bitcoin miner capitulation phase, during which miners are offloading their holdings onto the market, has continued for 46 days, marking the longest such period on record. This suggests that due to worsening mining profitability, miners are selling Bitcoin for survival rather than profit-taking. Additionally, the number of active addresses on the network has dropped 31% over the past six months, indicating a shrinking user base and contributing significantly to declining market confidence.

The macroeconomic environment is also unfavorable for the digital asset market. Stronger-than-expected U.S. employment data has dampened expectations for Federal Reserve rate cuts, rapidly cooling investor appetite for risk assets. Glassnode pointed out that institutional inflows through spot Bitcoin ETFs have turned negative and projected that, until the market finds a new upward catalyst, Bitcoin is likely to move defensively within a narrow range between $60,000 and $72,000.

With technical and structural weaknesses converging, Bitcoin is now testing the last line of defense at $60,000. Experts advise that investors should focus on risk management rather than premature dip-buying until excessive leverage in the futures market is fully flushed out and genuine spot demand recovers. Global investors are watching closely to see whether Bitcoin can establish a bottom around $55,000 and lay the groundwork for a rebound.

Disclaimer: This article is provided for investment reference only, and we are not responsible for any investment losses resulting from its use. The content should be interpreted solely for informational purposes.