Analysts say Bitcoin could drop to $50,000, but strong economic conditions and a strong “buy the dip” mindset will likely help BTC’s price bounce back quickly.
Bitcoin dropped to $53,600 on Coinbase on July 5, the lowest price since February. Analysts worry that the worst is yet to come.
Analysts Warn of Further Bitcoin Decline Amid Market Fears
Bitcoin (BTC) briefly dropped to $53,600 on Coinbase on July 5 before leveling out to $54,122 at the time of publication, according to TradingView data. eToro market analyst Josh Gilbert attributed much of the sell-off to fears surrounding Mt. Gox creditor repayments, which will release around $8 billion worth of BTC into the market in July.
Bitcoin fell as low as $53,600 on Coinbase on July 5. Source: TradingView
Following this sudden dip, Gilbert 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 psychological 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.
Pav Hundal said, “A large amount of Bitcoin is about to hit a market that’s already showing little interest. While long-term macro conditions are still positive, in the short term, we might test $50,000 and possibly go lower. Right now, $52,000 is a crucial level where bears and bulls are battling.”
Analysts from 10x Research also predicted a continued dip that could see the price of Bitcoin fall to as low as $50,000 in the coming weeks. They warned that selling “could accelerate as support gets broken and sellers scramble to find liquidity.”
Reasons for Long-Term Optimism in the Crypto Market
Despite the short-term bearish outlook, Josh Gilbert from eToro believes there are reasons for investors to remain bullish in the long term.
“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,” Gilbert said.
He also mentioned that the full acceptance of an Ethereum ETF by the SEC, with a July launch date, would be a significant boost for the crypto market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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