This is How Low Bitcoin Could Drop, According to CryptoQuant

The past few days have been characterized by sharp price drops for Bitcoin (BTC). Still, on-chain experts predict a possible drop to $40,000 even though crypto enthusiasts hope for stability.

The latest analysis comes as the leading crypto asset is currently navigating a crucial support area that could determine whether the asset holds its ground or slides into lower price levels.

CryptoQuant Predicts Further Price Drop

According to on-chain analytics platform CryptoQuant, Bitcoin’s recent price downturn suggests that the asset might further drop to $40,000. 

As the analysts pointed out, the leading crypto asset broke below the $57,000 support level. Therefore, this breach suggests that a more price downtrend may be imminent for Bitcoin. At the time of writing, BTC was exchanging hands at $50,972, down by more than 16% in the past 24 hours. 

Furthermore, CryptoQuant pointed out that traders are currently facing their most negative unrealized profit margins since November 2022. This means that if crypto investors were to take profit from their portfolio in the current market bloodbath, they would face significant losses in their investments which will be more than the losses experienced in November 2022. 

Crypto Market Bleeds

The value of crypto assets has demonstrated a disturbing downtrend today which has raised major concerns among investors who now concern about the future outlook of the market. 

According to Coinglass data, Bitcoin saw over $359 million of traders’ assets liquidated in the past 24 hours. This has increased the pressure on the crypto market as the asset now trades at its monthly lowest.

Meanwhile, the significant price drop can be attributed to several factors such as economic and political developments that have affected various financial sectors including stock markets which lost ground significantly on Thursday and Friday.

Another reason for the current downtrend witnessed in the crypto market is the significant negative flows of both the Bitcoin and Ethereum exchange-traded fund (ETF). According to Soso Value data update on August 2, BTC saw a daily total net inflows of negative $237.45 million.