- Bitcoin is predicted to drop below $57,000, potentially reaching $50,000, according to 10x Research.
- The decline is driven by drying buy flows and accelerating sell flows.
- Anticipated Mt. Gox repayments add to market sell-off pressure.
Bitcoin is expected to dip below $57,000, with a potential drop to $50,000, as reported by 10x Research on July 4. The sharp decline follows a break from the $60,000 level, signaling a significant shift in market sentiment. Experts at 10x Research attribute this trend to decreasing buy flows and increasing sell flows.
Markus Thielen, an analyst at 10x Research, pointed out that signs of an overbought market appeared in early June, indicating a possible correction. The recent 5.44% fall in Bitcoin’s price has notably impacted investor sentiment and market liquidity, reflected in its $1.1 billion market capitalization and a 57% surge in trading volume.
Sell-Off Factors
The price decline coincides with the anticipated Mt. Gox repayments of $8.5 billion worth of Bitcoin set to start in July. The 10x Research report noted that breaking the $60,000 support level has led to increased selling pressure, with only uninformed traders willing to buy at this stage. The report also highlighted a “Double Top Formation” in Bitcoin’s price since December 2023, suggesting further declines.
Market Outlook
According to 10x Research, traders should remain cautious and prioritize risk management due to expected continued volatility. Additionally, IT Tech’s analysis indicates that long-term Bitcoin holders, who usually keep their assets for five to seven years, are now selling, contributing to the downward trend. On July 3, the spent output profit ratio (SOPR) from long-term holders exceeded a value of 10, showing significant profit-taking activities.
The Bitcoin market remains in flux, with ongoing sell-offs and anticipated large repayments influencing the price dynamics. Traders are advised to stay alert and manage risks as the situation evolves.
