QCP Capital highlights key reasons that could trigger a massive selloff in the BTC market, potentially bringing down Bitcoin price to $50,000. Read on to know more. By Rupam Roy June 29, 2024
Highlights
- Bitcoin traded near the flatline today and surged over the brief $61K mark.
- Top analysts highlights key reasons that could bring down BTC to $50K level.
- Despite the gloomy outlook, the analysts remain optimistic over the BTC’s long-term potential.
The recent dip in Bitcoin price below the $60K range has sparked discussions in the crypto market over the potential movements in the coming days. Meanwhile, several investors seem to be staying on the sideline given the recent volatile scenario dominating the broader crypto market, let alone Bitcoin price.
However, amid this, a renowned cryptocurrency firm QCP Capital has shared insights on the potential future moves of the BTC price. It’s worth noting that QCP Capital has highlighted potential factors that could pull down Bitcoin to as low as $50,000.
Bitcoin Price To Hit $50K, QCP Capital Predicts
Bitcoin’s slip below the $61,000 mark has reignited fears of a deeper decline, with market analysis pointing to several factors that could drive the price down to $50,000. QCP Capital, a prominent cryptocurrency firm, has highlighted a series of developments contributing to the current bearish sentiment in its recent weekend brief.
QCP Capital notes that Bitcoin’s $60,000 support level, historically resilient in the second quarter, faces new pressures. According to QCP, the market is going to witness a heightened volatile scenario with robust supply influx from the Mt. Gox payouts. In addition, the hefty Bitcoin sales by government bodies also weighed on the sentiments.
Notably, the defunct Mt. Gox exchange, set to begin repaying creditors in Bitcoin and Bitcoin Cash starting July 2, introduces a potential influx of Bitcoin into the market, which could amplify volatility. In addition to the Mt. Gox situation, significant Bitcoin transfers by the U.S. government to crypto exchanges have weighed heavily on investor sentiment.
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Meanwhile, the same pattern was seen with the German government’s large-scale Bitcoin offload. These developments have led to apprehensions about further downward pressure on Bitcoin’s price. In other words, the market participants are bracing for the potential impact of these transactions on liquidity and market stability.
What’s Next?
Another factor contributing to the cautious outlook is the current liquidity situation. 10X Research, a popular on-chain analytics firm, has issued a warning regarding Bitcoin’s precarious position. They highlight the increasing market anxiety over a potential “double top” formation, a chart pattern that often signals an impending significant price drop.
Meanwhile, their recent analysis on X suggests that Bitcoin could test lower levels, possibly BTC reaching $50,000 or even dropping further to $45,000. Besides, the ongoing uncertainty and liquidity challenges add to the bearish sentiment surrounding Bitcoin, making it more susceptible to downward pressure.
Source: 10X Research
However, it’s not all doom and gloom. QCP Capital believes that while the potential BTC drop to $50,000 is plausible, the market will likely find robust support at this level. They argue that traditional finance interest remains strong, supported by general regulatory easing worldwide, which could provide a stabilizing effect.
On the other hand, the anticipated trading of the U.S. Spot Ethereum ETF in the next week could inject some excitement and positive momentum back into the market. Besides, the hype over the Solana ETF also fueled discussions in the market.
As of writing, Bitcoin price traded near the flatline and crossed the brief $61,000 mark. Its trading volume rose 9% from yesterday to $23.62 billion, and its price saw a low of $59,985.40. According to CoinGlass, the Bitcoin Futures Open Interest rose 0.13% over the last four hours, while dropping about 2% from yesterday.