According to experts from 10x Research, Bitcoin is expected to drop below $57,000. They anticipate this decline could extend to $50,000, marking a significant shift in market sentiment as buying flows decrease and selling accelerates.
Marcus Tillen, an analyst at 10x Research, pointed out that this downward trend has been foreseeable, citing data since early June indicating an overheated market ripe for correction. The breach of the psychological barrier from $60,000 to $50,000 is viewed as a significant shift in market mood.
The recent 5% decline in the price of Bitcoin has significantly impacted investor sentiment and market liquidity. This drop reflects a $1.1 billion reduction in Bitcoin’s market capitalization and a 57% increase in trading volume. The breakthrough has intensified sell-offs as sellers struggle for liquidity at support levels.
The anticipated Mt. Gox payout of $8.5 billion worth of BTC, scheduled to begin in July, also contributes to the sell-offs. The 10x Research report notes that only poorly informed traders are inclined to buy at these prices after the support level breach of $60,000.
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The 10x Research report includes an analysis of the chart depicting a “double top” pattern in Bitcoin’s price since December 2023 — a bearish pattern indicating further potential declines. They advise traders to focus on risk management to prepare for ongoing volatility.
Recent analysis of IT Tech shows that the downward trend is partly due to long-term holders cashing in their profits. On July 3rd, the spent output profit ratio (SOPR) from long-term holders exceeded a value of 10, indicating BTC has been sold for at least 10 times higher than its initial purchase price. Long-term BTC holders, who typically retain their holdings for five to seven years, have significantly contributed to the current selling pressure in the market.
