Bitcoin price drops below $54,000, crypto analysts warn of more trouble

While you were probably in dreamland, Bitcoin (BTC) has taken a huge nosedive. Now that the long-feared repayments from bankrupt Bitcoin exchange Mt. Gox finally seem to be starting, thanks to a BTC transaction worth billions of dollars (internal link to my previous article today), the Bitcoin price has fallen by more than 8%.

While Bitcoin has crashed more than 16% in just days, analysts warn that more pain is yet to come. How far can the
Bitcoin price to fall further?

Bitcoin Hits Hard on Mt. Gox Refund Fears

You may have read about Bitcoin’s dramatic price drop this morning. Bitcoin took multiple hits last night, with a total drop of almost 9%. Shortly after midnight, Bitcoin began its steep decline, reaching its lowest point early this morning at $53,350.

This is a major drop that we do not often see with Bitcoin. Bitcoin has been reduced to its lowest price since the end of February, but several analysts believe that the final blow has not yet been delivered.

As mentioned, Bitcoin has been hit hard by the feared distribution of over 142,000 Bitcoins from the 2014 collapsed exchange Mt. Gox. Last week it was announced that the refund process will start from the beginning of this month. Yesterday the first step seems to have been taken with a transfer worth $2.781 billion from one of Mt. Gox’s cold wallets to a new wallet address.

BTC price to $50,000?

Bitcoin’s price action has been deteriorating rapidly in recent days. Josh Gilbert, market analyst at trading platform eToro, expects this trend to continue in the coming days. “The news stories are much more bearish than bullish at the moment, and the selling activity we’re seeing is clearly unsettling for investors, often leading to more selling,” Gilbert said.

The $50,000 zone is the next major support that has suddenly come within reach. “I wouldn’t be surprised if the price tests $50,000 in a week, but that will be an important psychological level,” Gilbert said.

Likewise, Swyftx analyst Pav Hundal told Cointelegraph that the worst of Bitcoin’s price action is yet to come:

“A huge amount of Bitcoin is about to meet a market that was already apathetic. Long-term macro conditions are still positive, but in the short term we could test $50,000 and possibly even lower. $52,000 is a major battleground for bears and bulls right now.”

Analysts at research firm 10xResearch have been anticipating a price drop to $50,000 for some time now, and now suddenly seem to be getting more and more support for it. Losing support around $60,000 was catastrophic for the world’s largest crypto, they say.

At the time of writing, the BTC price is $54,389, down 7.15% from 24 hours ago.

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