The sharp drop in bitcoin will not be limited to the level of $ 57,000 and is able to push the exchange rate to $ 50,000 due to the sudden change in sentiment. This is the conclusion reached by 10x Research.
#Bitcoin Is Crashing to $50,000 – But You Are Prepared…!!! -> here -> https://t.co/oCgSsi3t0r pic.twitter.com/H1HY0kGkV7
— 10x Research (@10x_Research) July 4, 2024Experts noted a weakening of the flow of buy orders with a simultaneous increase in sell orders.
"The data received in early June hinted at an overbought market ripe for correction," they added.
The report says that the key was a breakdown down the key level for bitcoin miners and BTC-ETF buyers of $60,000, which coincides with the lower limit of the three-month range. As a result, the decline "accelerated as [...] sellers began to look for liquidity."
Earlier, the start of the correction was postponed by the expiration of options for $ 6.5 billion, experts said.
In their opinion, at the moment it is possible to implement the "double top" formation, which assumes a drop in quotations in the area of $ 45,000 - 50,000.
Data: 10x Research.The hodlers have moved on to sales
CryptoQuant recorded an increase in the value of the SOPR metric in relation to hodlers above 10.
In other words, long-term investors have recorded profits exceeding ten times their initial investments. The greatest activity was observed among holders who had been storing bitcoins for five to seven years, experts explained.
Analysts urged to monitor their behavior, as continued sales may lead to a further drop in prices.
Separately, experts suggested monitoring the dynamics of the supply of stablecoins. Its growth is a condition for resuming purchases of digital gold, they explained.
Hope for a rebound in the Ethereum price
QCP Capital also mentioned signs of miners' surrender as the reason for the negative dynamics. Against the background of deteriorating sentiment in the spot market, derivatives are accumulating calls on Ethereum with expirations in September and December, analysts said.
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Experts allowed the further liquidation of shorts in the second largest cryptocurrency by capitalization against the background of the expected SEC approval of the S-1 form for ETFs.
https://forklog.com/news/smi-ethereum-etf-ne-nachnut-torgovatsya-v-nachale-iyulyaCurrent situation
On July 4, the exchange rate of the first cryptocurrency fell below $57,000 at the moment, which was last observed in February.
Bloomberg recalled the phased reimbursement by the trustee of Mt. Gox 137,000 BTC to customers of the bankrupt platform and traders' concern that some of the coins will end up on the open market.
https://forklog.com/news/padenie-bitkoina-uhudshilo-rynochnye-nastroeniyaThe distribution of digital gold by the US and German authorities is also causing nervousness. Additionally, the factor of the American elections may put pressure on the quotes.
Recall that Standard Chartered predicted a new bitcoin ATH in August.
Earlier, CryptoQuant announced the completion of the formation of prerequisites for the resumption of the rally in the third quarter.