Crypto Research Firm Says Bitcoin Crash Below $60,000 May Not Be The End, Here’s Why

Scott Matherson

11 months ago

3 mins read

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Bitcoin dropped to as low as $60,000 in the last 24 hours, and although the flagship crypto has reclaimed that level, crypto research firm 10x Research predicts that BTC can still go lower soon enough. The firm also outlined several factors that support this bearish outlook.

Bitcoin Could Drop To As Low As $50,000

10x Research’s lead analyst Markus Thielen mentioned in the report that Bitcoin could drop to as low as $50,000. He highlighted a topping formation for the flagship crypto that could lead to this steep decline. Thielen noted how Bitcoin had been range trading for a while now, a pattern that is often marked by several false breakouts.

However, with BTC shifting into a topping formation, the research warned that such a pattern has usually left “the average retail investors vulnerable, with many altcoins experiencing significant drops” alongside Bitcoin. Thielen further highlighted $61,500 as an important price level that Bitcoin needs to hold above, as the flagship crypto trading below this level will confirm the potential drop to $50,000.

10x Research also mentioned several factors that support this bearish outlook. One is the lack of new money flowing into the crypto market. Instead, there have been net outflows with the US Spot Bitcoin ETFs, for example, recording $1.2 billion in net outflows since June 10. Traders have also suffered significant liquidations, with $0.8 billion and $0.9 billion in Bitcoin and Ethereum positions wiped out from the crypto market this past week.

Ethereum’s low network activity is another factor supporting 10x Researh’s bearish Bitcoin outlook. Transaction fees on Ethereum are currently at their lowest since 2020, suggesting that investors haven’t been keen on trading on the network for a while now despite the Dencun upgrade, which helped lower gas fees.

Many Bitcoin miners are also said to be approaching break-even costs, which is also concerning considering the amount of sell pressure these miners can put on BTC. These miners are already reported to have sold over 30,000 BTC ($2 billion) this month, contributing to Bitcoin’s decline.

History Suggests BTC Won’t Drop To As Low As $50,000

Crypto analyst Rekt Capital recently mentioned that Bitcoin should be able to hold above $60,000 based on its historical patterns. He stated that BTC has never lost its re-accumulation range low as support in the post-halving period, with $60,000 currently serving as the re-accumulation range low.

Meanwhile, Rekt Capital mentioned that a longer bull run is on the cards, seeing as Bitcoin’s rate of acceleration has already dropped from 260 days to 160. He also noted that Bitcoin has continued to reduce the rate of acceleration in this cycle through this consolidation in the reaccumulation range.

Bitcoin price chart from Tradingview.com — BTC price makes its way to $61,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

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With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

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