Bitcoin Prices Plummet Below $60,000 Support Level
On July 4, Bitcoin prices dropped below the crucial support level of $60,000, hitting a nine-week low of around $57,000. This significant plunge has raised concerns among investors and analysts, including Markus Thielen, the founder and CEO of 10x Research.
Potential Dip to $50K Anticipated
Thielen expressed his apprehensions about the possibility of Bitcoin further declining to or even below $50,000. He emphasized the importance of the $60,000 level in the crypto market, particularly for miners and Bitcoin Spot ETF buyers, as it delineates the lower boundary of a three-month trading range.
- Thielen cautioned that a breach of the support level could trigger intensified selling pressure as sellers look to offload their holdings.
- He mentioned that only uninformed traders would consider buying at these levels and that a breakdown could lead to a sharp decline to the low $50,000s.
The analyst pointed out dismal Q3 seasonals, citing historical trends that show negative returns typically occurring in August and September. Additionally, there are concerns about miners liquidating their inventory as Bitcoin prices approach their $60,000 break-even point.
Richard Galvin, the co-founder of hedge fund Digital Asset Capital Management, highlighted the political landscape’s impact on the market, noting the potential consequences of a change in leadership on crypto policies. He also mentioned the looming shadow of Mt. Gox and government-related Bitcoin sales as factors contributing to the current weakness in the market.
Expert Predictions and Market Analysis
Andrew Kang, a prominent crypto investor, predicted a more substantial drop in Bitcoin prices, revising his initial estimates downwards from the low $50Ks to a more extreme reset to the $40Ks. He forecasted a period of choppy and downward-trending prices before the market could potentially reverse course and establish an upward trend.
Meanwhile, FxPro’s senior market analyst Alex Kuptsikevich echoed the bearish sentiment, noting that Bitcoin had breached the lower boundary of a descending channel and fallen below the 200-day moving average. He shared the forecast for a further decline, with a possible 12% drop to the $51.5k level.
Bitcoin Price Forecast and Market Impact
Following the recent price decline, Bitcoin hit a nine-week low on July 4, shedding 5.2% in the past 24 hours and 12.6% over the previous two weeks. The cryptocurrency is now approaching the $51,500 support level, indicating a potential further drop.
As expected, the broader crypto market is experiencing a ripple effect, with altcoins like Solana (SOL), Toncoin (TON), Dogecoin (DOGE), Avalanche (AVAX), Shiba Inu (SHIB), and Chainlink (LINK) witnessing more significant losses in tandem with Bitcoin’s decline.
Hot Take: Brace for Bitcoin’s Bearish Trend
As Bitcoin prices plummet below the critical $60,000 support level, the crypto market is witnessing heightened volatility and uncertainty. Analysts and experts are sounding the alarm about the potential for further downside, with predictions of Bitcoin revisiting the $50,000 range or even plummeting to the $40,000s.
Investors should exercise caution and closely monitor the market developments as the bearish sentiment takes hold in the crypto space. The upcoming weeks are likely to test the resilience of Bitcoin and altcoins, with potential opportunities emerging amid the challenging market conditions.
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