Bitcoin’s Steep Decline
Bitcoin recently plunged to $60,000, and crypto research firm 10x Research predicts it could fall even lower. Analyst Markus Thielen points to a “topping formation” that suggests a drop to $50,000.
Factors Supporting the Bearish Outlook
- Lack of New Investment: The crypto market is seeing net outflows, with US Spot Bitcoin ETFs experiencing $1.2 billion in outflows since June 10.
- Liquidations: Traders have lost $0.8 billion and $0.9 billion in Bitcoin and Ethereum positions, respectively, in the past week.
- Low Ethereum Activity: Transaction fees on Ethereum are at their lowest since 2020, indicating a lack of trading activity.
- Miners’ Sell Pressure: Many Bitcoin miners are approaching break-even costs and have reportedly sold over 30,000 BTC this month.
Historical Support
However, crypto analyst Rekt Capital suggests that Bitcoin may hold above $60,000 based on historical patterns. He points out that BTC has never lost its post-halving re-accumulation range low as support, and $60,000 is currently serving as that low.
Long-Term Bullish Outlook
Rekt Capital also predicts a longer bull run, noting that Bitcoin’s rate of acceleration has slowed down. He believes that the current consolidation in the re-accumulation range will continue to reduce the rate of acceleration.
