5.7 C
London
Monday, March 17, 2025
HomeBitcoinBitcoin will crash to $50K, 10x Research warns

Bitcoin will crash to $50K, 10x Research warns

Date:

Related News

No More Relying on Crypto Mining: 6 Ways to Make Money and Boost Your Return On Investment

The cryptocurrency landscape is undergoing a significant transformation. Bitcoin...

Orbis86 Brings AI & Web3 to GDC 2025 – Powering the Next Era of Gaming

Gaming is no longer just pixels and play—it’s evolving...

Crypto Staking vs. Cloud Mining: Why Staking Becomes the First Choice for Investors

With the top cryptocurrencies plummeting, crypto enthusiasts are turning...

Government of Pakistan Appoints Bilal Bin Saqib as Chief Advisor to Finance Minister on Crypto Council

Islamabad, Pakistan The Government of Pakistan has appointed Bilal Bin Saqib as...

According to 10x Research, Bitcoin’s potential drop below $50,000 is linked to dwindling buy flows and accelerating sell flows.

Update July 5, 08:55 am UTC: This article has been updated to include quotes from Markus Thielen.

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, the founder of 10x Research, suggests that the downward spiral was foreseeable, stating:

“Our data from early June already hinted at an overbought market ripe for correction.” 

Bitcoin investor implications 

The sudden 5.44% fall in the Bitcoin 

BTC

$59,996

 price has substantially impacted investor sentiment and market liquidity, reflected in 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.”

Speaking with Cointelegraph, Thielen explained that most crypto traders tend to be long-biased, but “prices often decline once the last buyer has bought,” which causes a narrative shift.

“Following the failed breakout on June 8, some of our trading models turned bearish on June 12 based on pattern analysis. […] Although we prefer higher Bitcoin prices, there’s a risk that the recent loss in momentum could significantly delay the rally’s restart.”

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.” 

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.”

Thielen told Cointelegraph that the BTC rally in late May and late June “was driven by the expectations of SEC approval for the ETH ETF,” but over-positioning had led to the recent correction.

“In mid-June, several Bitcoin signals indicated a potential price correction. Recognizing shifts in macro variables like growth, liquidity, and inflation is crucial for crypto markets as well. Bitcoin may drop back to $50,000, with potential further decline to $45,000.”

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.

Source:- COINTELEGRAPH

Ariana Raven
Ariana Raven
🌟 Ariana Raven - Passionate Crypto & Blockchain Marketing Specialist with 3 years of experience in driving impactful marketing campaigns across the digital landscape! 🚀

Trending News

LEAVE A REPLY

Please enter your comment!
Please enter your name here