- A “double top” reversal pattern is forming on the Bitcoin chart.
- Miners, ETF buyers, and hodlers are selling, with a reversal possible if stablecoin supply increases.
- Investors continue to bet on ETH-ETF approval by purchasing call options for September-December.
A sharp decline in Bitcoin may not stop at $57,000 and could push the price down to $50,000 due to a sudden shift in sentiment, according to 10x Research.
#Bitcoin Is Crashing to $50,000 – But You Are Prepared…!!! -> here -> https://t.co/oCgSsi3t0r pic.twitter.com/H1HY0kGkV7
— 10x Research (@10x_Research) July 4, 2024
Experts noted a weakening in buy orders alongside an increase in sell orders.
“Data received in early June hinted at an overbought market ripe for correction,” they added.
The report states that the decisive factor was the break below the key level of $60,000 for Bitcoin miners and BTC-ETF buyers, coinciding with the lower boundary of a three-month range. Consequently, the decline “accelerated as sellers sought liquidity.”
Previously, the correction was delayed by the expiration of $6.5 billion in options, experts noted.
They believe a “double top” formation could lead to a price drop to the $45,000-50,000 range.
Hodlers Turn to Selling
CryptoQuant recorded an increase in the SOPR metric for hodlers above 10.
In other words, long-term investors realized profits exceeding ten times their initial investments. The highest activity was observed among holders who had kept Bitcoin for five to seven years, specialists explained.
Analysts urged monitoring their behavior, as continued selling could lead to further price declines.
Experts also suggested tracking the dynamics of stablecoin supply. Its growth is a condition for resuming digital gold purchases, they explained.
Hope for Ethereum Price Rebound
QCP Capital cited signs of miner capitulation as a reason for negative dynamics. Amid worsening sentiment in the spot market, call options on Ethereum with expirations in September and December are being accumulated, analysts noted.
Specialists suggested a potential liquidation of shorts in the second-largest cryptocurrency amid the anticipated approval of the SEC form S-1 for an ETF.
Current Situation
On July 4, the price of the leading cryptocurrency briefly fell below $57,000, a level last seen in February.
Bloomberg reminded of the phased compensation by the Mt.Gox trustee of 137,000 BTC to clients of the bankrupt platform and traders’ concerns that some coins might hit the open market.
Nervousness is also caused by the distribution of digital gold by the authorities of the US and Germany. Additionally, the American elections could exert pressure on prices.
Standard Chartered previously forecast a new ATH for Bitcoin in August.
Earlier, CryptoQuant stated that the prerequisites for a rally resumption in the third quarter had been completed.