Bitcoin dropped to a low of $60,000 in the last 24 hours before rising back up to that level. However, crypto research company 10x Research says that the most popular cryptocurrency could still see more drops. The company lists a number of reasons why they think this will happen.
Markus Thielen, who is the lead expert at 10x Research, thinks Bitcoin could fall as low as $50,000. He points out a rising pattern that suggests a possible sharp drop. Thielen says that Bitcoin has been trading in a range lately, which is a trend that is often marked by false breakouts.
Bitcoin Topping Formation Risks
The study says that this topping formation leaves small investors open to risk, since big drops in altcoins often happen at the same time as Bitcoin’s decline. Thielen stresses how important it is to keep the price above $61,500; trade below this level could confirm a possible drop to $50,000.
10x Research says that this negative outlook is backed up by a number of reasons. The crypto market isn’t getting any new money, as net losses have been recorded. Since June 10, $1.2 billion has been lost from US Spot Bitcoin ETFs alone. Traders have also lost a lot of money; in the last week, they lost $0.8 billion in Bitcoin positions and $0.9 billion in Ethereum positions.
The negative mood is also helped by the fact that Ethereum’s network isn’t being used much. Even though the Dencun upgrade dropped gas fees, Ethereum transaction fees are at their lowest level since 2020. This means that fewer people are interested in trading. Also, a lot of Bitcoin miners are getting close to the point where they can break even, which is risky because it means they might try to sell their coins. It is said that miners have sold more than 30,000 BTC ($2 billion) this month, which has made Bitcoin’s fall even worse.
Crypto expert Rekt Capital has a different view. He says that BTC should stay above $60,000 based on how it has behaved in the past. He says that since the split, BTC has never lost its re-accumulation range low as support. At the moment, $60,000 is this range low. According to Rekt Capital, a longer bull run may be on the way because BTC rate of acceleration has dropped from 260 days to 160 days, and it may continue to fall during this consolidation phase.
