10x Research: Bitcoin to Crash to $50,000
According to analysts at 10x Research, the misery is not over yet for Bitcoin. They predict a price drop to the level of 50,000 dollars for the digital currency. In the data, the analysts of 10x Research see that the purchasing power decreases, while the selling pressure increases.
Bearish on Bitcoin
Breaking the psychological barrier of $60,000 will mean a significant change in market sentiment, according to analysts at 10x Research.
Markus Thielen argues that the downward spiral Bitcoin is currently experiencing was predictable. “Our data from early June already hinted at a market that was overbought and ripe for a correction.”
The analysts at 10x Research see little demand for Bitcoin at the moment and for that reason the price can still fall a lot further, they say. The 8.5 billion dollars in Bitcoin that Mt. Gox is going to hand out to its former users doesn’t help either.
According to the 10x Research report, we are now at a point where “only uninformed traders” want to buy.
Long-term buyers take their profits
According to a recent analysis by IT Tech, the downward trend in Bitcoin price is also due to profit taking by long-term investors.
The Spent Output Profit Ratio (SOPR) for long-term investors recently exceeded 10.0, meaning these investors sold their Bitcoin for 10x the initial purchase price.
According to the analysis, it was long-term investors who had held their Bitcoin for roughly 5-7 years who now decided to press the sell button. Of course, that is their right. It is not at all strange to sometimes use your Bitcoin to finance important purchases, such as buying a house.
For new investors it is less fun, because they are of course feeling the pain now. But don’t forget that people who are taking their profits now have also been on the rollercoaster for years and probably still are.
