Analysts Say The Worst-Case Scenario For Bitcoin Has Yet To Happen

Analysts suggest that Bitcoin could fall to $50,000, but strong macroeconomic conditions and a "buy the dip" approach are likely to help the price of BTC recover quickly.

On July 5, Bitcoin dropped to $53,600 on Coinbase, marking its first time trading at this price since February. Analysts are concerned that the worst may not be over yet.

According to TradingView data, Bitcoin was trading at $54,122 at that time, stabilizing at that level.

eToro market analyst Josh Gilbert noted that a significant portion of the selling in Bitcoin could stem from concerns related to Mt. Gox creditor repayments, with approximately $8 billion worth of BTC expected to hit the market in July.

Gilbert expressed that, following the sudden drop to $53,600, he anticipates Bitcoin’s price movements to worsen in the coming days. He said, “Currently, the news flow is more bearish than bullish, and the selling activity we’re seeing is causing considerable anxiety among investors, which typically leads to more selling.”

Gilbert added, “I wouldn’t be surprised to see the asset test $50,000 within the next week, but this will be an important psychological level. There will be weakness in the short term until a catalyst arrives that could drive prices up. This catalyst might be investors buying the dip or an ETH ETF approval to boost sentiment.”

Similarly, Swyftx analyst Pav Hundal mentioned that the worst might not be over for Bitcoin’s price action. Hundal said, “A significant Bitcoin wall is about to meet a market that is already indifferent. Long-term macro conditions remain positive, but in the short term, we could test $50,000 and potentially lower. Currently, $52,000 is an important battleground for bears and bulls.”

Analysts from 10x Research also forecasted that Bitcoin’s price could drop to $50,000 in the coming weeks, warning that "as support breaks and sellers struggle to find liquidity, sales could accelerate."

Despite the short-term bearish outlook, Gilbert pointed out that there are reasons for investors to remain bullish over the long term. He said, “We expect catalysts like the Federal Reserve lowering interest rates in September and potentially another cut in December to push prices up.” He added, “Additionally, a full approval of an Ethereum ETF by the SEC in July would provide substantial support for the crypto market.”

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