Bitcoin Price Slump Sparks Concerns Over $60,000 Support Level

Bitcoin's price has been under pressure in recent days, with the total crypto market capitalization falling by 3.81% on February 23. This decline erased $90 billion in value from the market and shifted momentum to the downside.

The drop was largely driven by Bitcoin, which lost key support at around $65,000. As a result, long liquidations increased, suggesting that bears have taken control of the market for now.

One metric that could provide insight into Bitcoin's price is its 'Electrical Cost', which has dropped to around $53,500. Historically, this has been a key indicator of when weaker miners exit the network and supply pressure eases.

However, with spot demand still weak and ETF flows remaining negative, the risk of a deeper pullback remains high. Some analysts believe that the Electrical Cost could drop closer to $45,000 before Bitcoin's price stabilizes.