10x Research Predicts Bitcoin Could Plunge to $50K

Recent developments have seen Bitcoin’s price plunge from above $60,000 to under $57,000 on July 4, as per insights from 10x Research. This decline is significant, marking a breach of the vital $60,000 level and could potentially see the cryptocurrency dropping further towards $50,000. This trend, according to 10x Research, is driven by a reduction in buying activity coupled with an increase in selling momentum.

Analyst Markus Thielen from 10x Research highlighted that this downturn was anticipated based on their early June data, which indicated an overbought condition that was set for a downturn.

The recent 5.44% decrease in Bitcoin’s value has had a profound effect on both investor mood and market liquidity, as evidenced by a rise in trading volume by 57% and the market’s valuation at approximately $1.1 billion.

The report from 10x Research identified this drop as crucial, particularly affecting Bitcoin miners and entities involved in spot Bitcoin ETFs, predicting a hastened decline as market supports fail and sellers desperately seek liquidity.

This sell-off aligns with the expected commencement of Mt. Gox’s $8.5 billion BTC repayments in July, adding further pressure to the market.

10x Research noted that post the breach of the $60,000 support, the market has been left with mostly uninformed traders willing to purchase Bitcoin.

Bitcoin Price Expectations

Looking forward, 10x Research has adopted a cautious stance on Bitcoin’s future pricing, emphasizing the importance of risk management amid anticipated continued market volatility.

Their analysts have previously cautioned against complacency in current market conditions.

Bitcoin Long-Term Holders Take Profits

Separately, IT Tech’s recent analysis attributes the downward trend to long-term Bitcoin holders who are realizing significant gains. As of July 3, the spent output profit ratio (SOPR) for long-term holders had surpassed 10, meaning that Bitcoin was sold for at least ten times its original purchase price.

This selling pressure has been attributed to long-term holders, typically retaining their Bitcoin for between five to seven years, deciding to capitalize on their investments.

For more news, find me on Twitter Giannis Andreou and subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you