The volatile world of cryptocurrency took another tumble recently as the gleaming star of the digital currency, Bitcoin, took a sudden dip to a startling $60,000 within the past day. Despite regaining its footings at this level, premier crypto research firm 10x Research warns that Bitcoin may not have seen the last of its downturn. Analysts from the firm have identified various signs bolstering the bearish forecast.
According to the leading expert at 10x Research, Markus Thielen, there are indicators suggesting that the value of Bitcoin could plummet to levels as low as $50,000. Thielen presented a point of interest in the recent behavior of Bitcoin, spot-lighting what he describes as a ‘topping formation’ observable in Bitcoin’s trading outline, a pattern frequently signposted by multiple false breakouts.
Thielen’s concern lies in the shifting nature of this pattern into said ‘topping formation’. Historically, this pattern has often left average retail investors teetering on the edge of risk, resulting in numerous altcoins experiencing substantial depreciations alongside Bitcoin. Thielen emphasized the crucial $61,500 marker, underscoring that maintaining a value higher than this interim anchor could help Bitcoin mitigate a drastic fall to $50,000.
Adding trepidation to the waning optimism around Bitcoin, the team at 10x Research has highlighted several factors providing a backbone to this grim forecast. One significant issue is the ebbing flow of fresh money streaming into cryptocurrency. Quite the contrary, there have been notable outflows, with data showing US Spot Bitcoin ETFs recording an astounding $1.2 billion in net outflows since June 10. In addition, traders have been at the mercy of considerable liquidations with nearly $0.8 billion and $0.9 billion in Bitcoin and Ethereum positions eradicated from the cryptocurrency market just within the previous week.
Additionally, backed by statistics reflecting Ethereum’s recent low network activity, the experts at 10x Research are holding their bearish sentiment towards the digital heavyweight. Ethereum’s transaction fees are at their nadir since 2020, suggesting an overall lack of enthusiasm from investors towards trading on the Ethereum network in spite of the hyped Dencun upgrade designed to lower gas fees.
To further darken the cloud hanging over Bitcoin’s prospects, several Bitcoin miners are believed to be threading dangerously close to their break-even costs. If true, it is deeply concerning given the potential sell pressure these miners can exert on Bitcoin’s value. Frighteningly enough, said miners have reportedly sold a whopping 30,000 BTC ($2 billion) this month, effectively contributing to Bitcoin’s downfall.
This bleak outlook isn’t shared universally within the crypto-analytical community, however. Contrary to the grim predictions emanating from 10x Research, crypto analyst Rekt Capital remains optimistic. Rekt Capital’s belief that Bitcoin will manage to uphold value at a minimum of $60,000 is embedded in historical Bitcoin behavior. According to the renowned analyst, Bitcoin has never lost its re-accumulation range low as a key support value following the halving epoch, with $60,000 currently serving as said range.
Rekt Capital has also provided hope for a more extended bull run on the horizon, noticing a decrease in Bitcoin’s acceleration rate from 260 days to 160. The analyst has deduced that a deceleration in Bitcoin’s rate within this cycle during its reaccumulation range consolidation paves the way for a steady, longer bull run.
