- Bitcoin’s recent dip to $60,000 raises concerns about further declines, with research firm 10x Research predicting possible lower levels soon.
- Contributing factors to this bearish outlook include lackluster market inflows, significant trader liquidations, and pressures from Bitcoin miners.
- Analysts highlight key price levels and historical patterns that could either support or challenge these bearish predictions.
Discover why Bitcoin may face further declines and the critical factors you need to watch in the crypto market’s evolving landscape.
Bitcoin at Risk of Dropping to $50,000
According to Markus Thielen, the lead analyst at 10x Research, Bitcoin might plummet to $50,000 due to a forming topping pattern. He noted that the cryptocurrency has been oscillating within a range that often triggers multiple false breakouts. This pattern could suggest a significant downturn ahead.
Thielen emphasized the crucial $61,500 price mark, indicating that if Bitcoin falls below this level, it might confirm a bearish trend toward $50,000. The volatility in Bitcoin’s price puts retail investors at risk, potentially impacting various altcoins as well.
Key Factors Supporting the Bearish Prediction
Several elements underpinning this bearish outlook include a notable lack of new investments in the crypto market. The US Spot Bitcoin ETFs have seen $1.2 billion in outflows since June 10, exacerbating the situation. Additionally, significant liquidations in Bitcoin and Ethereum positions, totaling $1.7 billion last week, indicate heightened market instability.
The Ethereum network’s decreased activity also aligns with this bearish sentiment. Transaction fees on the Ethereum network are at their lowest since 2020, suggesting a reduced trading volume despite recent technological upgrades like Dencun, which were expected to boost activity.
Bitcoin Miners and Market Pressure
Bitcoin miners nearing their break-even costs add to the bearish scenario. Miner sell-offs can exert substantial pressure on Bitcoin’s price. Reports indicate that miners have offloaded over 30,000 BTC, amounting to $2 billion this month, contributing to the cryptocurrency’s downward trajectory.
Historical Data Challenges the Bearish Outlook
In contrast to 10x Research’s perspective, crypto analyst Rekt Capital argues that Bitcoin might maintain its position above $60,000, based on historical data. He asserts that in previous cycles, Bitcoin has consistently held its re-accumulation range lows post-halving, with $60,000 now serving as this critical support level.
Rekt Capital predicts that a prolonged bull run could still unfold. He highlights that Bitcoin’s rate of acceleration has been decreasing, dropping from 260 days to 160 days. The ongoing consolidation within the re-accumulation range could signal a sustainable upward trend.
Conclusion
In conclusion, Bitcoin’s near-term fate hangs in a delicate balance. The bearish predictions hinge on current market dynamics, including limited inflows, trader liquidations, and miner activities. However, historical patterns provide a counter-narrative, suggesting that Bitcoin might hold its ground at critical support levels. Investors should closely monitor these factors as the crypto market continues to evolve.
