Bitcoin price turned downward at the opening of Asian markets after several days of warnings. Today, US markets are on holiday, and we will see the impact of ETF sales tomorrow. Experts from 10x Research shared their scenario for cryptocurrencies amid the recent decline. These predictions align with their previous assessments, potentially offering a good projection for the future.
How Low Will Bitcoin Drop?
Sales in altcoins reached painful levels, and BTC fell to $56,952. We have already published evaluations throughout the day regarding the reasons for losing the psychological $60,000 support. The main concern here is whether the sales will continue down to $50,000 or even lower.
Markus Thielen, an analyst at 10x Research, mentioned the risks of a downward series of drops, stating;
“Our data from early June already hinted at an overbought market ripe for correction.”
Daily slides above 5% led to a 57% increase in trading volume, and investors clearly turned to panic selling.
“The breaking of the key level for Bitcoin miners and spot Bitcoin ETF buyers could lead to larger losses as sellers scramble to find liquidity.”
What Will Happen in Cryptocurrencies?
Markus Thielen says only uninformed investors are willing to buy after the $60,000 support was broken. Today’s analysis report, which shared the double top formation, advises prioritizing risk management. Accordingly, BTC may enter a recovery trend after deeper losses because MTGOX returns and government BTC sales, beyond FUD, create a significant supply surplus along with miner sales.
On July 3, the long-term investors‘ spent output ratio (SOPR) exceeded 10. This means the sold BTCs are being disposed of at least 10 times their initial purchase price. This suggests that 5-7 year holders might have been caught up in the recent selling frenzy.
Moreover, some experts monitoring massive on-chain BTC movements suggest that MTGOX returns might have genuinely started as of July. While things are improving on the macroeconomic front for investors, the recent events can only be described as unfortunate.
