According to experts at 10x Research, Bitcoin is set to drop below $57,000 from over $60,000 on July 4. They predict this sharp decline may just be the beginning, potentially falling further to $50,000. Breaking the psychological $60,000 benchmark toward $50,000 signifies a major shift in market sentiment, which 10x Research attributes to decreasing buy flows and increasing sell flows.
Markus Thielen, an analyst at 10x Research, suggests that the downward trend was predictable, stating:
Related:
Bitcoin down 20%+ from all-time highs — Is BTC price headed to $50K?
Bitcoin investor implications
The sudden 5.44% drop in Bitcoin (BTC) price has significantly impacted investor sentiment and market liquidity, reflected in BTC’s $1.1 billion market capitalization and a 57% increase in trading volume. By breaking the “key level for Bitcoin miners and spot Bitcoin ETF buyers,” the 10x Research report anticipated that the price decline “could accelerate as support breaks and sellers scramble to find liquidity.”
The sell-off coincides with the expected Mt. Gox repayments of $8.5 billion worth of BTC, which were set to begin in July. According to the 10x Research report, having broken the $60,000 support, “only ill-informed traders are willing to buy here.”
10x Research report analysis chart depicting a “Double Top Formation” for the Bitcoin price since December 2023. Source: 10x Research
Related:
Bitcoin ‘pretty unlikely’ to revisit $50K price level, says analyst
Bitcoin price expectations
The 10x Research report maintains a cautious outlook for BTC, advising traders to prioritize risk management in preparation for continued volatility.
Source:
10x Research
Related:
Bitcoin price falls to $65K as $400M crypto market liquidation rocks BTC and altcoins
Bitcoin long-term holders take profits
According to a recent analysis from IT Tech, the downward trend is attributed to long-term holders cashing in on substantial profits.
Source:
CryptoQuant
On July 3, the spent output profit ratio (SOPR) from long-term holders exceeded a value of 10, indicating that the BTC was sold for at least 10 times the initial purchase price. According to the analysis, long-term BTC holders, who typically retain their holdings for roughly five to seven years, have contributed to the selling pressure in the market.
Magazine:
Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame