According to 10x Research experts, Bitcoin is expected to fall below $57,000. They suggest that this decline may continue to $50,000, marking a significant shift in market sentiment due to slowing buying and accelerated selling.
Markus Thielen, an analyst at 10x Research, points out that this downward trend was predictable and cites data from early March, which indicates an imminent adjustment in an overbought market. Breaking through the psychological barrier of $50,000 to $60,000 is seen as a major shift in market sentiment.
The recent 5% drop in Bitcoin prices has had a severe impact on investor sentiment and market liquidity. This decline is reflected in a market cap of $110 million and a 57% increase in trading volume. The breakthrough has intensified selling, with sellers vying for liquidity at support levels.
An expected release of $850 million worth of BTC from Mt. Gox in April is also one of the reasons for the selling pressure. 10x Research’s report suggests that only uninformed traders would be inclined to buy at these prices after breaking through the $60,000 support level.
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10x Research’s report includes a description of a “bearish pattern” in Bitcoin prices since February 2023, indicating a potential further decline. They advise traders to focus on risk management and be prepared for continued volatility.
Recent analysis by IT Tech shows that the downward trend is partly due to profit-taking by long-term holders. On March 10th, the Spent Output Profit Ratio (SOPR) for long-term holders exceeded 10, indicating that the selling price of BTC was at least 10 times the original purchase price. Bitcoin’s long-term holders typically hold for five to seven years and have contributed significantly to the selling pressure in the current market.
