10x Research Predicts Bitcoin's Sharp Decline to $50K as Sell Flows Surge

According to the authorities at 10x Research (via Cointelegraph), Bitcoin is expected to decline from over $60,000 on July 4 to below $57,000.

Bitcoin price is set to drop below $57,000 as accelerating sell flows and a marked decrease in buy flows have caused the BTC price to drop from over $60,000 on July 4. The price may continue to drop to $50,000.

The psychological $60,000 benchmark was breached, leading to a rapid shift in market sentiment. This shift is attributed to the fact that buy flows have dried up while sell flows are accelerating, according to 10x Research.

“Our data from early June already hinted at an overbought market ripe for correction,” 10x Research analyst Markus Thielen said of the downtrend.

The steep 5.44% decrease in the Bitcoin price has impacted investor sentiment and market liquidity, as evident in the 57% increase in trading volume and the $1.1 billion market capitalization of BTC, respectively.

As the 10x Research report noted, the price drop could accelerate as sellers seek liquidity and support is breached, following the breaking of the “key level for Bitcoin miners and spot Bitcoin ETF buyers.”

The sell-off coincides with the anticipated commencement of Mt. Gox repayments in July, amounting to $8.5 billion in BTC.

“Only ill-informed traders are willing to buy here,” the 10x Research report states following the breach of $60,000 support.

10x Research Urges Caution as Long-Term Bitcoin Holders Cash Out, Heightening Market Volatility

The 10x Research report advises caution regarding the BTC price and urges speculators to prioritize risk management in light of the continuing volatility.

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

According to the latest analysis by IT Tech, the downtrend is driven by long-term holders cashing out substantial profits.

On July 3, the Spent Output Profit Ratio (SOPR) for long-term holders exceeded 10, indicating that the BTC was sold for at least 10 times the initial purchase price.

The analysis suggests that the selling pressure in the market is being exacerbated by long-term BTC holders, who typically hold their coins for periods ranging from five to seven years.

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