Bitcoin Will Crash to $50,000, 10x Research Warns

According to experts at 10x Research, Bitcoin is poised to drop from over $60,000 to $57,000 on July 4. They suggest that this sharp decline has only just begun and may fall further to $50,000.

Breaking through the psychological benchmark of $60,000 toward $50,000 marks a significant shift in market sentiment, which 10x Research attributes to buying flows drying up “while selling flows accelerate.”

Markus Thielen, analyst at 10x Research, says the downward spiral was predictable:

“Our data from early June already pointed to an overbought market ripe for correction.”

Related: Bitcoin Drops Over 20% From All-Time High — Is BTC Price Heading for $50,000?

Implications for Bitcoin Investors

The sudden 5.44% drop in Bitcoin (BTC) price has had a significant impact on investor sentiment and market liquidity. This is reflected in BTC’s $1.1 billion market cap and 57% increase in trading volume.

Breaking through the “key level for Bitcoin miners and Bitcoin ETF buyers,” the 10x Research report predicted that the price decline “could accelerate as support is broken and sellers rush to find liquidity.”

The sell-off coincides with Mt. Gox’s expected $8.5 billion worth of BTC redemptions, which are set to begin in July.

According to the 10x Research report, after breaking the $60,000 support, “only uninformed traders are willing to buy here.”

10x Research report analysis chart showing a “Double Top Formation” for Bitcoin price since December 2023. Source: 10x Research

Related: Analyst: Bitcoin ‘quite unlikely’ to return to $50,000 price level

Bitcoin Price Predictions

The 10x Research report remains cautious on BTC price, advising traders to prioritize risk management in preparation for continued volatility.

“We have warned that this is not the time to be complacent.”

Source: 10x Research

Related: Bitcoin Price Drops to $65,000 as $400 Million Crypto Market Liquidation Shakes BTC, Altcoins

Long-term Bitcoin holders are taking profits

According to a recent analysis by IT Tech, the downward trend can be attributed to long-term investors cashing in significant profits.

Source: CryptoQuant

On July 3, the issued output profit ratio (SOPR) of long-term investors exceeded 10, indicating that the BTC was sold for at least 10 times the original purchase price.

According to the analysis, long-term BTC holders, who typically hold their holdings for five to seven years, contributed to the selling pressure in the market.

Magazine: Bitcoin $500K Prediction, Spots Ether ETF ‘Staking Issue’— Thomas Fahrer, X Hall of Flame