Bitcoin’s price took a downward turn as Asian markets opened, following several days of cautionary signals. With US markets closed for holiday today, the impact of ETF sales will be observed tomorrow. Analysts from 10x Research have outlined their perspective on the cryptocurrency landscape amid this recent decline, which aligns with their earlier assessments, potentially providing a roadmap for the future.
**Contents**
1. **Bitcoin’s Decline Depth**
2. **Future of Cryptocurrencies**
3. **Bitcoin’s Price Outlook**
**Bitcoin’s Decline Depth**
Altcoin sales hit distressing levels, dragging BTC down to $56,952. Throughout the day, analyses were published discussing the reasons behind breaching the critical psychological support at $60,000. The central concern now hinges on whether further declines to $50,000 or below are plausible.
**Future of Cryptocurrencies**
Markus Thielen, an analyst at 10x Research, highlighted the risks associated with a sustained downward trend, noting a significant uptick in trading volume following daily slides exceeding 5%, driven by investor panic selling.
**Bitcoin’s Price Outlook**
Thielen cautioned against uninformed buying post the $60,000 support breach. Today’s analysis report, featuring the double top formation, emphasizes the importance of prioritizing risk management. Despite deeper losses, Bitcoin might initiate a recovery phase due to the influx from MTGOX returns, government BTC sales, and miner sell-offs, supplementing the existing supply surplus exacerbated by fear, uncertainty, and doubt (FUD).
On July 3, the long-term investors’ spent output ratio (SOPR) surpassed 10, implying that BTC sold recently had been held for 5-7 years. This suggests that even long-term holders were swept into the recent wave of selling. Additionally, experts monitoring large-scale BTC movements on-chain speculate that MTGOX repayments may have genuinely begun in July.
While there are signs of improvement on the macroeconomic front for investors, recent events have been notably challenging.
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**Disclaimer:** This article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies, and conduct their own research before making any decisions.
