10X Research: Bitcoin may see short rebound but risk of drop to $50K remains
10X Research warns Bitcoin could stage a short counter-trend rebound following recent sharp declines, but still faces material downside risk toward $50,000 (possibly $40,000–$50,000) later this year. CNBC and PANews report that this week’s crypto selling pressure was driven by spot-Bitcoin ETF selling, a cascade of liquidation from rapid price falls, and spillover from declines in software/tech stocks. Some buyers stepped in, triggering quick intraday recoveries, yet most market participants remain cautious about whether a bottom has been reached. Markus Thielen, head researcher at 10X Research, expects Bitcoin’s next low could touch $50K or fall into the $40K–$50K range. The article underscores continued volatility and cites ETF flows, liquidation events, and macro equity weakness as the main drivers. This is market information, not investment advice.
Bearish
The report signals continued downside risk for Bitcoin despite short-term bounce potential. Key drivers cited—spot-BTC ETF selling, liquidation cascades from rapid price drops, and spillover from tech equity selling—are classic bearish catalysts that can amplify downward momentum and reduce risk appetite. Markus Thielen’s forecast of a $40K–$50K low indicates analysts expect a renewed drawdown later in the year, not merely a transient correction. For traders, this suggests elevated volatility: short-term setups could favor tactical long entries on relief rallies, but risk management should prioritize protective stops and position sizing given the prospect of larger declines. Historically, ETF-related outflows and liquidation spirals (e.g., 2021–2022 drawdowns) have led to multi-week or multi-month weakness before sustained recovery, meaning trend-following short positions or hedges could outperform in the near to medium term while longer-term investors monitor on-chain and macro signals for a confirmed bottom.