Analysts at 10x Research are allowing bitcoin (BTC) to fall before a new growth phase. The cryptocurrency is at risk of collapsing to $50,000. This mark is seen as a fundamental value.
BTC will not be able to sag below this level, as most institutional investors entered the asset at around this value. A fall is expected before a new phase of growth, the 10x Research report noted.
Weakening activity in the crypto derivatives market suggests that traders are withdrawing funds for fear of a pullback. In the past week, capital has been exiting spot bitcoin-ETFs. For example, on June 21 alone, net capital outflows from the market totaled more than $100 million.
After falling to $50,000, analysts at 10x Research expect bitcoin to enter a consolidation phase, which could prove to be lengthy. During this period, the cryptocurrency will not be able to break out of its narrow range.
Only after the return of a new bullish phase, the largest cryptocurrency will get resources for the offensive and will be able to overcome the resistance around $70,000.