Bitcoin Could Rally To Almost $60K Ahead Of Another Decline To Low $50K: 10x Research

A fresh 10x Research report points out risks currently looming over Bitcoin BTC/USD, as Ethereum ETH/USD readies for its ETF approval.

What Happened: The report highlights that with all the six applicants for spot Ethereum ETFs filing for updated S-1 forms, an approval is likely around the corner.

The firm sees two out of three reversal indicators having turned bullish. With an RSI reading of 38, even short sellers may need to hold off until a potential failure at the $60,000-$62,000 level could push prices lower.

The firm predicts a short-term reversal in anticipation of a possible mini-rally, wherein the $55,000-$56,000 range is forming a base.

10x Research further sees Bitcoin rallying to nearly $60,000 before experiencing another decline to the low $50,000 range.

Also Read: Bitcoin’s Bearish Trend Is ‘Easier To Look Through’ Than Previous ‘Boogeymen,’ Says Investment Expert

Why It Matters: Highlighting the factors impacting Ethereum ETF inflows, 10x Research states that potential selling from Grayscale could offset any inflows into ETFs from the other five issuers. Thus, the fear of a "sell-the-news" event could still loom over the Ethereum ETF approval, although ETH prices are trading at similar levels as when the SEC signaled its initial approval.

10x Research also pointed to selling pressure from the German state of Saxony, which still has 25,000 BTC to sell. Mt. Gox selling pressure could materialize when Bitgo, likely managing claims for several large funds, initiates payouts by July 24.

Another notable factor is the potential $16 billion in FTX creditor payouts, out of which around $3.2 to $5 billion could return to crypto assets. The report adds that FTX creditors liquidations came in at $16,800 in November 2022 and now they can buy at $57,000. This "hardly seems like an enticing ‘discount’ for diving back into crypto," 10x Research writes.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Bitcoin Option Traders Expect Near-Term Volatility, Crypto-Asset Trading Experts Say

Image: Shutterstock