Will Bitcoin (BTC) Price Break Below $50,000 Mark

Analysts Predict Bitcoin Drop Below $50K Amid Sell-Off

Bitcoin is facing a perfect storm of selling pressure and bearish technical indicators. Large transfers by the U.S. government, the German government, and Mt. Gox have spooked investors, leading to a drop in the price of Bitcoin. Moreover, the analysts are also on the bearish side.

Selling Pressure On Bitcoin

According to the data of blockchain analytics firm Lookonchain, since June 19, 2024 U.S. government, the German government, and MtGox have transferred a total of 17,888 Bitcoins worth $1.08 Billion.

Furthermore, the German government has transferred Bitcoins consistently since July 1. They shifted 396,210 BTC worth approximately $22.78 Billion.

Moreover, the US government holds 213,297 BTC worth $11.72 Billion and Mt. Gox has 141,687 Bitcoins worth 7.78 Billion.

The big whale transfers created a panic situation among investors due to which the market experienced selling pressure. Result of this, the BTC price dropped to its lowest level since February.      

Experts Warn: Bitcoin Set to Drop Below $50,000

Analysts at 10x Research believe Bitcoin is headed for a steep decline, potentially dropping below $50,000. This prediction comes after a recent price drop from over $60,000 and is attributed to a combination of factors. 

Source: X

10x Research suggests a drying up of buyers and a surge in sellers is driving the price down. Analyst Markus Thielen points to early June data indicating an overheated market primed for a correction. The anticipated release of $8.5 billion in BTC from Mt. Gox is seen as adding to the selling pressure.

An IT Tech analysis suggests long-term investors are cashing in on profits, further fueling the sell-off. Moreover,10x Research advises caution and prioritizes risk management for traders navigating this volatile period.

Will Bitcoin Break Below $50,000 Level?

Bitcoin is facing extreme selling pressure on the daily technical chart. BTC price broke below key exponential moving averages showcasing bearishness. 

At press time BTC price is trading below 20, 50, and 200 Day EMAs suggesting bearish momentum in the king crypto. Moreover, key indicators like RSI and MACD are also supporting the bears on the daily technical chart.

At the time of writing Bitcoin was trading at the level of 56,394 with an intraday drop of 3.33%. If Bitcoin breaks below the $50,000 range then the next support is near $44,771.

Conclusion

Bitcoin is facing a confluence of bearish factors including large government sell-offs, analyst warnings, and weak technical indicators. The price of Bitcoin has dropped to its lowest level since February and could potentially fall below $50,000.

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