The recent drop in Bitcoin price below the $60,000 mark has sparked widespread discussion in the crypto market about potential future moves.

Many investors prefer to stay away amid the current volatility affecting the broader market, including BTC.

However, crypto firm QCP Capital share its view on potential future price movements of Bitcoin, identifying several factors that could lead to a drop to $50,000.

• Pressure on the $60,000 support level: Historically strong in the second quarter, this level is now under increased scrutiny.
• Payouts from Mt. Gox: As of July 2, defunct exchange Mt. Gox will start repaying its creditors in Bitcoin and Bitcoin Cash, which could lead to a strong inflow of BTC into the market, increasing volatility.
• Government Bitcoin Sales: The substantial sales of BTC by the US government and the similar actions of the German government had a negative impact on market attitudes.

These factors add to fears of further downward pressure on Bitcoin’s price, with market participants bracing for potential impacts on market liquidity and stability.

In addition to QCP Capital’s observations, 10X Research, a chain analysis firm, raised concerns about Bitcoin’s current liquidity situation. They warn of a potential formation “double top” – a chart pattern that often signals a decline in prices. Their analysis shows that BTC could test lower levels, possibly reaching $50,000 or even falling further to $45,000.

However, QCP Capital also notes that while a drop to $50,000 is likely, the market will potentially find strong support at this level. They argue that interest from traditional finance remains robust, supported by general easing of regulations globally, which could help stabilize the market.

There are also potential positive developments on the horizon. The expected full approval of the spot Ethereum ETF next week could bring positive momentum to the market. Additionally, the excitement surrounding the Solana ETF is fueling discussions and optimism among investors.

At the time of writing, Bitcoin is trading near the $61,000 mark. Its trading volume was down 8% from the previous day, reaching $20.34 billion.