Bitcoin has fallen through a price support level that can signal an 8%-12% correction when the price crosses it to the downside, CryptoQuant analysts said in a report published Tuesday.

"As the price of bitcoin has crossed this metric to the downside, bitcoin could decline towards $60,000. The bitcoin price has fallen below the trader's on-chain realized price of $65,800, a key support level in bull markets," the analysts added.

However, Tuesday's CryptoQuant market report said that although bitcoin has fallen below this key level, downside pressure could be limited. Nonetheless, "the market lacks bullish momentum."

CryptoQuant analysts added that traders are still not increasing their bitcoin holdings, and demand growth from large holders, or "whales," remains weak. Additionally, …