On Thursday, July 4, 2024, the price of bitcoin fell below $57,000, reaching a low of $56,952 at 5:20 a.m. EDT. There is widespread speculation about the Mt Gox distribution and the German government’s transfer of approximately 3,000 bitcoin to unidentified wallets, Coinbase, Bitstamp, and Kraken.

Bearish Sentiment Grows as Bitcoin Continues to Slide

Bitcoin’s price has decreased by 4% in the past day and more than 6% over the last week. The decline began yesterday at 9:05 p.m. EDT, when bitcoin’s value slipped under the $60,000 mark. The community is significantly concerned about the German government’s bitcoin transfers and the anticipated distribution of coins by Mt Gox this week.

Data from Arkham Intelligence shows Mt. Gox wallets making dust or test transfers. The Mt. Gox Trustee indicated that distribution would start in July, but no specific date was provided. Simultaneously, Arkham data indicates that the German government transferred 3,000 BTC. This week, Federal Reserve officials, including Chair Jerome Powell, revealed that the central bank requires additional data and time before cutting rates.

10x Research Warns of Intensifying Bitcoin Price Declines

These factors, coupled with low trading volumes, have contributed to the downtrend, pushing BTC below the 200-day moving average. A market update from 10x Research suggests BTC could reach the $50,000 range. 10x Research has repeatedly warned of this bearish trend over the past month. “Buy flows have long dried up while sell flows are accelerating,” 10x Research wrote. “We warned that this was not the time to be complacent and that risk management was vital.”

10x Research noted that price declines could intensify as support levels are breached and sellers rush to secure liquidity. “Only ill-informed traders are willing to buy here. Breaking this support could cause a sharp decline to the low $50,000s,” the researchers stated. “Unfortunately, many appear to be still very long bitcoin, while a correction towards $50,000/$55,000 could have offered much better re-entry levels.”

What happens next is uncertain, but the bearish sentiment has unsettled the crypto community. BTC is down 16% this month and roughly 21% below the all-time high of $73,737 recorded on March 14. As the crypto landscape trembles under recent transactions and speculative pressure, the bitcoin market braces for potentially steeper declines. At press time, BTC has managed to climb back above the $58,000 range at 7:08 a.m. EDT on Thursday morning.