Bitcoin plunged as low as $53,600 on Coinbase today, July 5, before recording a slight recovery. BTC’s decline marks its lowest point since February 2024, and analysts fear more woes ahead.
Bitcoin is trading at $55,585, having declined 3.8% in the past 24 hours. Market analysts believe the fear of increased selling pressure from the Mt. Gox repayment is one factor likely limiting Bitcoin’s price.
Analyst Predicts Bearish Outlook for Bitcoin
Market Analyst at eToro, Josh Gilbert, highlighted some factors responsible for the ongoing sell-off. According to Gilbert, much of Bitcoin’s sell-off may be due to fears stemming from proposed Mt. Gox repayments, which will introduce over $8 billion worth of BTC to the market.
Market watch for today! 📊#ASX to open lower, UK politics in focus, Iron ore futures climb.
1️⃣ $BTC drops below $60k amid US political uncertainty.
2️⃣ US jobs data: Expected 200k new jobs, 4% unemployment. 🧑💻Get the full scoop ⤵️
— eToro Australia (@eToroAU) July 5, 2024
Gilbert also said political uncertainty from the upcoming elections could influence crypto market prices.
The analyst noted that the US jobs data release is anticipated in a few hours. The forecast is 200,000 jobs in June, with an unemployment rate of 4%. This job data is crucial for the US Federal Reserve to determine the number of rate cuts for 2024.
Gilbert believes that these macroeconomic factors influence asset prices in the crypto market. He expects more selling pressure, which could drive Bitcoin lower to the critical support level of $50,000 within the next week.
In addition, the digital asset firm 10X Research predicts a decline to the $55,000-$50,000 price range ahead for Bitcoin. 10X Research believes the best strategy is to wait for recovery, as there is no rush in catching a falling knife.
The platform warns that selling pressure could intensify as Bitcoin breaks below key support levels and traders rush to find liquidity.
Meanwhile, analyst Ali Charts believes the market has already hit its peak of excitement and is now cooling down. Therefore, a retracement phase to cool off before the next rally was inevitable.
In this cycle, we’ve witnessed the approval of #Bitcoin ETFs, #memecoin mania, and celebrities launching their own #altcoins!
But what if that was it? What if we’ve already hit euphoria and are now feeling complacent, thinking, “we just need to cool off for the next rally”? pic.twitter.com/aTCuppjTPF
— Ali (@ali_charts) July 4, 2024
Amid the bearish outlook, Gilbert identified a possible Feds rate cut as a catalyst for potential market recovery. He also noted that Ether ETF approval and sufficient but-the-dip actions from investors could activate a recovery phase.
BTC Shows Price Volatility Today: What Comes Next?
BTC displayed positive price action between June 29 and July 1. However, the bears forced a decline from July 2, with Bitcoin recording four consecutive red days with lower lows.
Bitcoin has dropped below the $57,500 resistance level and is approaching the $53,600 support level. If this support fails to hold, BTC will decline to a low of $50,000 in the coming days.
Moreover, Bitcoin is trading close to the lower band of the Donchian Channel (DC,) confirming intense selling pressure in the market.
Similarly, the RSI indicator is in the oversold region below 30, displaying a value of 25.84. The RSI indicator is still moving downwards, suggesting further price decline for Bitcoin.
Therefore, Bitcoin will likely trade in the $53,600-$50,000 price range in the coming days until the buyers regain momentum.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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