According to experts at 10x Research, Bitcoin is poised to fall below $57,000 from over $60,000 on July 4. They suggest that this sharp decline may just be beginning, potentially dropping further to $50,000.
Breaking the psychological $60,000 benchmark toward $50,000 marks a significant shift in market sentiment, which 10x Research attributes to buy flows drying up “while sell flows are accelerating.”
Markus Thielen, an analyst at 10x Research, suggests that the downward spiral was foreseeable, stating:
“Our data from early June already hinted at an overbought market ripe for correction.”
Related: Bitcoin down 20%+ from all-time highs — Is BTC price headed to $50K?
Bitcoin investor implications
The sudden 5.44% fall in Bitcoin (BTC) price has substantially impacted investor sentiment and market liquidity, reflected in the BTC’s $1.1 billion market capitalization and 57% increase in trading volume.
By breaking the “key level for Bitcoin miners and spot Bitcoin ETF buyers,” the 10x Research report foresaw that the price decline “could accelerate as support gets broken and sellers scramble to find liquidity.”
The sell-off coincides with the anticipated 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.”
Related: Bitcoin ‘pretty unlikely’ to revisit $50K price level, says analyst
Bitcoin price expectations
The 10x Research report maintains a cautious outlook for the price of BTC, advising traders to prioritize risk management in preparation for continued volatility.
“We warned that this was not the time to be complacent.”
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 attributable to long-term holders cashing in on substantial profits.
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.
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