Bitcoin dropped to just $60,000 in the last 24 hours, and while the flagship cryptocurrency has regained that level, the cryptocurrency research firm 10x Research predicts that BTC may drop soon. The company also presented several factors supporting this bearish outlook.

Bitcoin could fall as low as $50,000

10x Research Principal Analyst Markus Thielen mentioned in report that Bitcoin could fall as low as $50,000. Emphasized by A top formation for the flagship cryptocurrency, which could lead to such a keen decline. Thielen noted that Bitcoin has been trading in a volatile range for some time, often characterized by several false breakouts.

However, as BTC transitions into a top formation, the study cautioned that such a pattern tends to leave “ average retail investors vulnerable, with many altcoins experiencing significant declines” along with Bitcoin. Thielen further emphasized that $61,500 is an crucial price level that Bitcoin must maintain above as the flagship cryptocurrency trade below this level will confirm potential drop to $50,000.

10x Research also mentioned several factors supporting this bearish outlook. One of them is the lack of fresh money flowing into the cryptocurrency market. Instead, there have been net outflows from US Spot Bitcoin ETFs, for example, which have seen net outflows of $1.2 billion since June 10. Traders also suffered significant liquidationsand last week, positions worth $0.8 billion and $0.9 billion in Bitcoin and Ethereum disappeared from the cryptocurrency market.

Ethereum’s low network activity is another factor confirming Researh’s 10x bearish prediction for Bitcoin. Trading fees on Ethereum are currently at their lowest level since 2020, suggesting that investors have been reluctant to trade on the network for some time despite the Dencun update that helped lower gas fees.

Many Bitcoin miners are also said to be approaching break-even, which is also concerning given the amount of selling pressure these miners can put on BTC. These miners are already there reported sold over 30,000 BTC ($2 billion) this month, contributing to Bitcoin’s value decline.

History suggests that BTC will not fall as low as $50,000

Rekt Capital cryptocurrency analyst I recently mentioned that Bitcoin should be able to do this keep above $60,000 based on its historical patterns. He stated that BTC has never lost its low reaccumulation range as post-halving support, with $60,000 currently serving as the low reaccumulation range.

Meanwhile, Rekt Capital mentioned that a longer bull run is likely given that Bitcoin’s acceleration rate has already dropped from 260 days to 160. He also noted that Bitcoin continues to reduce its acceleration rate in this cycle over this period consolidation in terms of reaccumulation.

Featured image created with Dall.E, chart from Tradingview.com