According to 10x Research, Bitcoin’s potential drop below $50,000** is tied to weakening buy flows and accelerating sell pressures. Analysts suggest the cryptocurrency is poised for further declines after breaking below **$57,000 (from over $60,000 on July 4).
Why Bitcoin’s Price Could Plummet to $50K
- Drying Buy Flows: Institutional and retail demand has slowed, while sell-side activity intensifies.
- Psychological Support Break: Falling below $60,000 signals a bearish shift, eroding trader confidence.
- Market Overbought Conditions: Data from early June hinted at an overdue correction.
Markus Thielen, 10x Research analyst, noted:
“Our indicators flagged an overbought market weeks ago. This downturn was predictable.”
Investor Implications
- Liquidity Crunch: A 5.44% price drop slashed Bitcoin’s market cap by $1.1 billion, with trading volume spiking 57%.
- ETF and Miner Impact: Breaking key support levels may trigger accelerated sell-offs as liquidity dwindles.
- Mt. Gox Overhang: Expected $8.5B BTC repayments (starting July) add downward pressure.
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Bitcoin Price Forecast: Caution Ahead
10x Research advises traders to prioritize risk management, warning:
“Complacency isn’t an option—volatility will persist.”
Long-Term Holders Cashing Out
- Profit-Taking Spree: Long-term holders (5–7 years) are selling at 10x their initial buy-in, per CryptoQuant.
- SOPR Ratio Spike: A reading above 10 confirms massive profit realization, fueling the decline.
FAQ: Bitcoin’s Drop to $50K
Q1: Is $50K the bottom for Bitcoin?
A: Not guaranteed. Further sell pressure or macroeconomic shifts could drive prices lower.
Q2: Should I buy Bitcoin at $50K?
A: Assess risk tolerance. Historically, BTC rebounds, but short-term volatility remains high.
Q3: How does Mt. Gox affect Bitcoin’s price?
A: Creditors may liquidate reimbursed BTC, flooding the market with supply.
Q4: Are ETFs still buying Bitcoin?
A: ETF inflows have slowed. Monitor fund activity for signs of renewed demand.
👉 Explore hedging strategies amid Bitcoin’s downturn
Sources: 10x Research, CryptoQuant