Bitcoin Slides Below $60K, Here's Why It Could Drop Further: 10x Research

10x Research on Monday raised concerns about Bitcoin‘s BTC/USD price trajectory, suggesting that the world’s leading cryptocurrency could be on the verge of a significant downturn.

In the report, lead analyst Markus Thielen pointed to a possible double top formation in Bitcoin’s price chart, a pattern that often precedes a steep decline.

The report identifies $61,500 as a critical level to watch, warning that if Bitcoin trades below this point, prices could potentially drop to the low $50,000s or even further.

The analyst highlights several factors contributing to this bearish outlook:

1. Declining liquidity in the crypto market, with Bitcoin ETFs experiencing $1.2 billion in net outflows since June 10.
2. Large-scale liquidations in both Ethereum ($0.9 billion) and Bitcoin ($0.8 billion) futures markets over the past week.
3. Extremely low Ethereum ETH/USD network activity, with transaction fees at their lowest since 2020.
4. Declining Bitcoin miner revenue, which has fallen to $32 million, approaching break-even costs for many miners.
5. Potential over-positioning of futures traders, particularly in Ethereum, which could lead to further liquidations.

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Why It Matters: Thielen also notes that while many investors are anticipating a bullish effect from the Ethereum ETF approval, the market may be overestimating its impact.

He points out that crypto trading volumes have been among the lowest since the bull market began in October 2022, indicating a lack of investor interest.

The report suggests that the current market conditions require careful risk management.

Thielen emphasizes the importance of being prepared to sell at high levels to capitalize on potential buying opportunities at lower prices.

Bitcoin is down 6% on Monday, falling as low as $59,900.

What’s Next: For those looking to delve deeper into these issues and explore the future of digital assets, Benzinga’s upcoming Future of Digital Assets event on Nov. 19 provides an excellent opportunity.

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