Bitcoin
Crypto Research Firm Says Bitcoin’s Drop Below $60,000 May Not Be the End, Here’s Why
Bitcoin has fallen to $60,000 in the last 24 hours, and while the flagship crypto has recovered that level, crypto research firm 10x Research predicts that BTC could still fall soon. The company also highlighted several factors that support this bearish outlook.
Bitcoin could fall to $50,000
10x Research principal analyst Markus Thielen, mentioned in report that Bitcoin could fall as low as $50,000. He highlighted a coverage formation for the major crypto that could lead to this sharp decline. Thielen noted how Bitcoin had been trading for some time, a pattern that is often marked by multiple false breakouts.
However, with BTC moving into a topping formation, the research warned that such a pattern has generally left “the average retail investors vulnerable, with many altcoins suffering significant drops” along with Bitcoin. Thielen further highlighted $61,500 as an important price level that Bitcoin needs to maintain above, as major crypto trading below this level will confirm the Potential drop to $50,000.
10x Research also mentioned several factors that support this bearish outlook. One is the lack of new money flowing into the crypto market. Instead, there have been net outflows with US spot Bitcoin ETFs, for example, recording $1.2 billion in net outflows since June 10. significant settlementswith $0.8 billion and $0.9 billion worth of Bitcoin and Ethereum positions wiped out of the crypto market last week.
Low activity on the Ethereum network is another factor supporting 10x Research’s bearish Bitcoin outlook. Transaction fees on Ethereum are currently at their lowest levels since 2020, suggesting that investors have not been interested in 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 considering the amount of selling pressure these miners can exert on BTC. These miners are already reported have sold more than 30,000 BTC ($2 billion) this month, contributing to Bitcoin’s decline.
History suggests BTC will not fall to $50,000
Crypto Analyst Rekt Capital recently mentioned that Bitcoin should be able to keep above $60,000 based on their historical patterns. He stated that BTC never lost its low reaccumulation range as support in the post-halving period, with $60,000 currently serving as a low reaccumulation range.
However, Rekt Capital mentioned that a longest bull run is in the plans as Bitcoin’s acceleration rate has already dropped from 260 days to 160. He also noted that Bitcoin has continued to reduce the acceleration rate this cycle through this consolidation in the reaccumulation range.
Featured image created with Dall.E, chart from Tradingview.com