According to experts from 10x Research, Bitcoin will fall below $57,000. They believe that this decline could continue to $50,000, which will mark a significant change in market sentiment as buying flows decrease and selling accelerates.
Marcus Tilan, an analyst at 10x Research, pointed out that this downward trend was predictable, citing data from early June indicating an overheated market ready for a correction. The breakthrough of the psychological barrier from $60,000 to $50,000 is seen as a serious shift in market sentiment.
The recent 5% drop in the price of Bitcoin has had a significant impact on investor sentiment and market liquidity. This decline is reflected in the market capitalization of Bitcoin by $1.1 billion and a 57% increase in trading volume. The breakthrough has intensified the selling pressure as sellers struggle for liquidity at support levels.
The expected payout of Mt. Gox worth $8.5 billion BTC, scheduled to begin in July, also contributes to the sell-off. The 10x Research report notes that after breaking the support level of $60,000, only poorly informed traders are willing to buy at these prices.
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Bitcoin trading price below $58,000 – how much more can we lose?
The 10x Research report includes an analysis of the chart depicting a “double top” pattern for the price of Bitcoin since December 2023, a bearish pattern indicating further potential declines. They advise traders to focus on risk management to prepare for ongoing volatility.
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Recent analysis by IT Tech shows that the downward trend is partly due to long-term holders who are taking profits. On July 3, the spent output profit ratio (SOPR) of long-term holders exceeded a value of 10, indicating that BTC has been sold at least 10 times higher than the initial purchase price. Long-term holders of BTC, who typically hold their assets for five to seven years, have significantly contributed to the current selling pressure in the market.
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