Cointelegraph Team
Cointelegraph
Bitcoin crashed as low as $53,600 on Coinbase on July 5, the first time the asset has traded at this price since February, and analysts fear the worst is yet to come.
Bitcoin (BTC $54,154) has since leveled out to trade at $54,122 at the time of publication, according to TradingView data.
Bitcoin fell as low as $53,600 on Coinbase on July 5. Source: TradingView
Speaking to Cointelegraph, eToro market analyst Josh Gilbert said much of the sell-off could be traced back to fears stemming from Mt. Gox creditor repayments, which will see around $8 billion worth of BTC hit the market in July.
Following the sudden dip to $53,600, Gilbert said he expects to see worsening price action for Bitcoin in the coming days.
“The news flow is far more bearish than bullish right now, and the selling activity we’re seeing is quite clearly unsettling investors, which often drives more selling,” Gilbert said.
It wouldn’t surprise me to see the asset test $50,000 within the next week, but that will be a key physiological level.
“There will be weakness in the short term until we receive a catalyst to drive the price higher, and that might come in the form of investors ‘buying the dip’ or an ETH ETF approval to improve sentiment,” he added.
Similarly, Swyftx analyst Pav Hundal told Cointelegraph that the worst of Bitcoin’s price action could be yet to come.
“A vast wall of Bitcoin is about to meet a market that was already apathetic. The macro conditions long-term are still positive, but short term, we could test 50k and potentially lower. $52k is a key battleground for bears and bulls at the moment,” said Hundal.
Analysts from 10x Research also predicted a continued dip that could see the price of Bitcoin dip to as low as $50,000 in the coming weeks, warning that selling “could accelerate as support gets broken and sellers scramble to find liquidity.”
Reasons to be bullish about Bitcoin
Despite the short-term bearish outlook, Gilbert said there are also reasons for investors to remain bullish on a longer-term time horizon.
We look to catalysts such as the Federal Reserve cutting interest rates in September, with the potential for another cut in December to lift prices.
“On top of that, the full acceptance of an Ethereum ETF from the SEC, with a July launch date, would be a big boost for the crypto market,” he added.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Is the party over for meme coins?
Meme coins have lost about 30% of their value in the past month following bearish sentiment from potential Bitcoin headwinds. WIF is down more than 61% from its recent all-time high of March 31. Crypto market may have passed euphoria level as celebrity meme token launches soak up liquidity from top meme coin projects.
Ethereum breaches key support as SEC delays ETF decision
Ethereum is down more than 5% on Thursday following the Securities & Exchange Commission's failure to approve ETH ETF issuers' S-1 drafts. Meanwhile, the recent decline has strengthened the bearish outlook after ETH moved below a key support level, sparking $90 million in long liquidations.
Optimism could extend losses by nearly 9% amidst bearish on-chain metrics
Optimism, an Ethereum scaling token is poised for nearly 9% correction as on-chain metrics turn bearish. While the number of active addresses hit a near four month peak, OP traders are realizing losses.
Bittensor reveals cause of network breach, TAO price suffers
In a report on Thursday, Bittensor (TAO) revealed that a malicious PYPi package disguised as an authentic Bittensor package caused its $8 million network breach. Following the report, TAO is down over 3%, stretching its weekly losses to about 20%.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.