Bitcoin down to $60,000 in the past 24 hours, and while the flagship crypto has regained that level, crypto research firm 10x Research predicts that BTC can still fall quickly enough. The company also outlined several factors supporting this bearish outlook.
Bitcoin could fall to $50,000
10x Research’s lead analyst Markus Thielen named in the report that Bitcoin could fall to $50,000. He emphasized A topping formation for the flagship crypto that could lead to this steep decline. Thielen noted that Bitcoin has been range trading for a while now, a pattern often characterized by several false breakouts.
Related reading
However, with BTC shifting towards a top formation, the study warned that such a pattern would usually ‘de average private investors vulnerable, with many altcoins alongside Bitcoin experiencing significant declines. Thielen further highlighted $61,500 as a key price level for Bitcoin to keep above, as the flagship of crypto trading below this level possible drop to $50,000.
10x Research also cited several factors supporting this bearish outlook. One of them is the lack of new money flowing into the crypto market. Instead, there have been net outflows from the US Spot Bitcoin ETFs, recording $1.2 billion in net outflows since June 10, for example. Traders have also suffered significant liquidationswith $0.8 billion and $0.9 billion worth of Bitcoin and Ethereum holdings wiped from the crypto market over the past week.
Ethereum’s low network activity is another factor supporting 10x Researh’s bearish Bitcoin outlook. Transaction fees on Ethereum are currently at their lowest levels since 2020, indicating that investors have not been keen on trading on the network for some time, despite the Dencun upgrade, which has helped reduce gas fees.
Many Bitcoin miners are also said to be approaching breakeven costs, which is also concerning given the amount of selling pressure these miners can put on BTC. These miners already are reported selling more than 30,000 BTC ($2 billion) this month, contributing to Bitcoin’s decline.
History suggests that BTC will not drop to $50,000
Crypto analyst Rekt Capital recently said Bitcoin should be able to do that keep above $60,000 based on its historical patterns. He stated that BTC has never lost its reaccumulation range as support in the post-halving period, with $60,000 currently serving as the reaccumulation range.
Related reading
Meanwhile, Rekt Capital mentioned that a longer bull run is looming as Bitcoin’s acceleration has already dropped from 260 days to 160. He also noted that Bitcoin has continued to lower its acceleration throughout this cycle. consolidation in the reaccumulation range.
Featured image created with Dall.E, chart from Tradingview.com