Crypto market researchers and analysts caution about further losses as Bitcoin struggles to maintain crucial support levels in its recent decline.
Bitcoin, the world’s largest cryptocurrency by market cap, has been experiencing roller-coaster price swings. Bitcoin analysts have predicted that the digital asset’s price might plummet to $50,000.
Bitcoin prices dipped below the $60,000 support level, reaching a nine-week low of approximately $57,000 during trading on July 4. According to Markus Thielen, founder and CEO of 10x Research, this could hasten a potential decline to $50,000 or even lower.
Possible Drop to $50,000 Level
Thielen emphasized that the $60,000 level is crucial for miners and Bitcoin Spot ETF buyers. It generally represents the lower boundary of a three-month trading range.
Richard Galvin, co-founder of hedge fund Digital Asset Capital Management, highlighted the political aspect. He noted that the possibility of a stronger Democratic candidate replacing Biden, who might not be pro-crypto, is a factor.
“A bigger reason in the short term for the Bitcoin weakness is the overhang from Mt. Gox, and government selling,” he said.
In addition, crypto investor Andrew Kang forecasted a more significant decline, stating that his initial estimates in the low $50,000s “were too conservative, and we anticipate a more severe reset to the $40Ks.
Interestingly, he also predicted several months of fluctuating and downward trends during recovery before an upward movement becomes possible.
According to a note to investors on July 4, FxPro senior market analyst Alex Kuptsikevich noted that the BTC price had touched the lower boundary of the descending channel and fallen below the 200-day moving average. He aligned with bearish forecasts, predicting a further decline.
Bitcoin Crashes Below $57,000
BTC prices dropped to a nine-week low on Thursday, July 4, with the asset losing 5.2% in the last 24 hours and 12.6% over the past two weeks. The following support level is anticipated at $51,500, toward which it is swinging.
As of the time of publication, the world’s largest crypto is trading slightly below $57,000, with a market cap of $1 trillion.
Meanwhile, the broader crypto market is impacted following the fall. Altcoins like Solana (SOL), Toncoin (TON), Dogecoin (DOGE), Avalanche (AVAX), Shiba Inu (SHIB), and Chainlink (LINK) are experiencing declines.
