Bitcoin plunges to $53,000 as analysts warn the worst is not over

Author: Tom Mitchelhill, CoinTelegraph; Compiler: Deng Tong, Golden Finance

On July 5, the price of Bitcoin on Coinbase fell to $53,600, the first time the asset has traded at this price since February this year, and analysts are worried that the worst is yet to come.

According to data from TradingView, as of the time of publication, the Bitcoin trading price has stabilized at $54,122.

On July 5, Bitcoin fell to $53,600 on Coinbase. Source: TradingView

EToro market analyst Josh Gilbert said in an interview that most of the sell-off can be traced back to the panic caused by the repayment of Mt. Gox creditors, and starting this month, about $8 billion worth of Bitcoin will be put on the market.

Following the sudden drop to the $53,600 level, Gilbert said he expects Bitcoin's price action to deteriorate in the coming days.

Gilbert said: “The news flow right now is bearish rather than bullish and the selling activity we are seeing is clearly unsettling investors, which tends to drive more selling.”

“I would not be surprised if the asset tests $50,000 within the next week, but this would be a key support level.”

He added: “There will be weakness in the short term until we receive a catalyst to drive prices higher, which could come in the form of investors ‘buying the dip’ or an ETH ETF approval improving market sentiment.”

Similarly, Swyftx analyst Pav Hundal noted that the worst may be yet to come for Bitcoin’s price action.

“A huge wall of Bitcoin is about to meet an already indifferent market. Long-term macro conditions remain positive, but in the short term we may test 50,000 or even lower. Currently, $52,000 is a key battlefield for bears and bulls. ”

Analysts at 10x Research also predicted that Bitcoin prices could continue to fall to $50,000 in the coming weeks, and warned that “the sell-off may accelerate as support levels are broken and sellers scramble to find liquidity.”

Reasons to be bullish on Bitcoin

Gilbert said that despite the bearish short-term outlook, investors also have reasons to remain bullish in the longer term.

"We look forward to catalysts such as the Fed's rate cut in September and the possibility of another rate cut in December to boost prices."

"On top of that, the SEC's full acceptance of the Ethereum ETF and its launch in July will be a huge boost to the cryptocurrency market," he added.