Bitcoin faces selling pressure
Bitcoin is currently facing severe selling pressure, with several factors coming together to create a perfect storm for bearish sentiment.
Huge transfers cause panic: According to data from blockchain analysis company Lookonchain, since June 19, 2024, the US government, the German government and Mt. Gox have transferred a total of 17,888 bitcoins worth $1.08 billion.
Massive transfers by the German government: The German government has been continuously transferring Bitcoin since July 1, transferring a total of 396,210 BTC worth approximately $22.78 billion.
U.S. Government and Mt. Gox Holdings: The U.S. government holds 213,297 bitcoins valued at $11.72 billion, while Mt. Gox owns 141,687 bitcoins valued at $7.78 billion.
These huge transfers panicked investors and created selling pressure in the market, causing the price of Bitcoin to fall to its lowest level since February.
Experts warn: Bitcoin will fall below $50,000
Analysts at 10x Research have predicted that Bitcoin will fall sharply, possibly below $50,000. This prediction comes after the price of Bitcoin quickly fell from over $60,000, and there are multiple reasons behind it.
Technical indicators are bearish: Multiple technical indicators show that Bitcoin is on a downward trend.
Market sentiment is low: Investors lack confidence and are selling their Bitcoins.
The future of Bitcoin
The current market conditions are worrying, but they also remind us to remain calm and pay close attention to market trends when investing.
May continue to fall in the short term: Due to the continued transfers of whales and market panic, Bitcoin may continue to fall in the short term.
Long-term prospects remain to be seen: Despite the short-term bearish outlook, the long-term prospects of Bitcoin still need to be analyzed in combination with multiple factors.
Buyers fall, sellers surge
10x Research pointed out that the reduction of buyers and the increase of sellers in the Bitcoin market are pushing down prices. Analyst Markus Thielen mentioned that data from early June showed that the market was overheated and a correction was coming. Mt. Gox is expected to release $8.5 billion worth of Bitcoin, which further exacerbated the selling pressure.
Profit-taking by long-term investors
IT Tech's analysis suggests that many long-term investors are taking profits, leading to increased selling pressure in the market. 10x Research advises traders to exercise caution and prioritize risk management during this turbulent period.
Will Bitcoin fall below the $50,000 mark?
Bitcoin is facing extreme selling pressure on the daily technical chart. The current price is below the 20-day, 50-day, and 200-day exponential moving averages, indicating strong bearish sentiment.
Technical indicators support bearishness: Key indicators such as RSI and MACD are also showing a bearish trend on the daily technical chart.
Current Price: As of writing, Bitcoin is trading at $56,394, with an intraday loss of 3.33%.
If Bitcoin falls below $50,000, the next support is near $44,771.
in conclusion
Bitcoin is facing a series of negative factors, including massive government sell-offs, bearish warnings from analysts, and weak technical indicators. Bitcoin prices have fallen to their lowest level since February and are likely to fall below the $50,000 mark. Investors need to be cautious in dealing with current market conditions, pay attention to market dynamics, and take reasonable risk management measures.
