25 June 2024
Bitcoin dropped to as low as $60,000 in the last 24 hours, and although the flagship crypto has reclaimed that level, crypto research firm 10x Research predicts that BTC can still go lower soon enough. The firm also outlined several factors that support this bearish outlook.
Bitcoin Could Drop To As Low As $50,000
10x Research’s lead analyst Markus Thielen mentioned in the report that Bitcoin could drop to as low as $50,000. He highlighted a topping formation for the flagship crypto that could lead to this steep decline. Thielen noted how Bitcoin had been range trading for a while now, a pattern that is often marked by several false breakouts.
However, with BTC shifting into a topping formation, the research warned that such a pattern has usually left “the average retail investors vulnerable, with many altcoins experiencing significant drops” alongside Bitcoin. Thielen further highlighted $61,500 as an important price level that Bitcoin needs to hold above, as the flagship 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 the US Spot Bitcoin ETFs, for example, recording $1.2 billion in net outflows since June 10. Traders have also suffered significant liquidations, with $0.8 billion and $0.9 billion in Bitcoin and Ethereum positions wiped out from the crypto market this 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 since 2020, suggesting that investors haven’t been keen on trading on the network for a while now despite the Dencun upgrade, which helped lower gas fees.
Many Bitcoin miners are also said to be approaching break-even costs, which is also concerning considering the amount of sell pressure these miners can put on BTC. These miners are already reported to have sold over 30,000 BTC ($2 billion) this month, contributing to Bitcoin’s decline.
History Suggests BTC Won’t Drop To As Low As $50,000
Crypto analyst Rekt Capital recently mentioned that Bitcoin should be able to hold above $60,000 based on its historical patterns. He stated that BTC has never lost its re-accumulation range low as support in the post-halving period, with $60,000 currently serving as the re-accumulation range low.
Meanwhile, Rekt Capital mentioned that a longer bull run is on the cards, seeing as Bitcoin’s rate of acceleration has already dropped from 260 days to 160. He also noted that Bitcoin has continued to reduce the rate of acceleration in this cycle through this consolidation in the reaccumulation range.