Experts at 10x Research predict Bitcoin is set to fall below $57,000 from its current level of over $60,000 on July 4.
They believe this sharp decline may just be the beginning, potentially dropping further to $50,000. This marks a significant shift in market sentiment, attributed to a decrease in buy flows and an acceleration in sell flows.
Markus Thielen, an analyst at 10x Research, commented on the situation:
“Our data from early June already hinted at an overbought market ripe for correction.”
The sudden 5.44% fall in Bitcoin’s price has significantly impacted investor sentiment and market liquidity, with Bitcoin’s market capitalization now at $1.1 billion and a 57% increase in trading volume.
The breaking of the $60,000 benchmark is critical for Bitcoin miners and spot Bitcoin ETF buyers.
According to the 10x Research report, this price decline “could accelerate as support gets broken and sellers scramble to find liquidity.”
READ MORE: Bitcoin Drops Below $60,000 Amid Potential $9 Billion Mt. Gox Payout and Whale Activity
This sell-off coincides with the anticipated Mt. Gox repayments of $8.5 billion worth of BTC, which were expected to begin in July.
The 10x Research report noted that after breaking the $60,000 support, “only ill-informed traders are willing to buy here.”
The report maintains a cautious outlook for Bitcoin’s price, advising traders to prioritize risk management in anticipation of continued volatility. Thielen emphasized:
“We warned that this was not the time to be complacent.”
Additionally, a recent analysis from IT Tech indicates the downward trend is due 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, meaning BTC was sold for at least 10 times the initial purchase price.
According to this analysis, long-term BTC holders, who typically retain their holdings for five to seven years, have contributed to the increased selling pressure in the market.
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