Bitcoin Plunges to 53000 Analysts Warn Worst Yet to Come

CoinDesk reports:
Author: Tom Mitchelhill, CoinTelegraph; Translator: Deng Tong,
On July 5th, the price of Bitcoin on Coinbase fell to $53,600, marking the first time the asset has traded at this price since February of this year, with analysts concerned that the worst may yet to come.
According to TradingView data, as of the time of this article’s publication, the trading price of Bitcoin has stabilized at $54,122.


On July 5th, Bitcoin fell to $53,600 on Coinbase. Source: TradingView
eToro market analyst Josh Gilbert stated in an interview that most of the sell-off can be traced back to the panic caused by the Mt. Gox creditor repayment, with about $8 billion worth of Bitcoin set to hit the market starting this month.
After the sudden drop to the $53,600 level, Gilbert said,
he expects the price trend of Bitcoin to worsen in the coming days.
Gilbert commented:
“The current news flow is bearish, not bullish, and the sell-off activity we’re seeing is clearly unsettling investors, which tends to drive more selling.”
“If the asset tests the $50,000 level within the next week, I wouldn’t be surprised, but that would be a critical support level.”
He added: “There will be weakness in the short term until we receive catalysts that drive the price higher, which could come in the form of investors ‘buying the dip’ or the approval of an ETH ETF to improve market sentiment.”
Similarly, Swyftx analyst Pav Hundal pointed out that the worst period for Bitcoin price trends may not have arrived yet.
“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 battleground for bears and bulls.
”
Analysts at 10x Research also predict,
that the price of Bitcoin may continue to fall in the coming weeks, dropping to $50,000
and warned,
“As support levels are broken, sellers scramble for liquidity, and the sell-off could accelerate.”
Reasons to be Optimistic About Bitcoin
Gilbert stated,
despite the bearish short-term outlook, investors have reasons to remain bullish over a longer period.
“We are looking forward to catalysts such as the Federal Reserve’s interest rate cut in September, and a possible repeat in December to boost prices.”
He added: “Most importantly, the full acceptance of the Ethereum ETF by the US Securities and Exchange Commission and its launch in July will greatly promote the development of the cryptocurrency market.”