Why Bitcoin Could Settle Below $60,000 in a New Trading Range and Why Another All-Time High Is Unlikely

• Bitcoin collapses under selling pressure due to increase in BTC currency reserves.
• 10xresearch suggests that Bitcoin has likely fallen below $60,000 in a new trading range and a new all-time high is unlikely.
• BTC is hovering around $60,000, with US political developments and macroeconomic developments emerging as market movers.

Bitcoin (BTC) fell below $60,000 on Monday as sentiment among market participants shifted from fear to “extreme fear.” A research report from 10xresearch confirms the emergence of two key market makers, US political developments and macroeconomic events this week.

Analysts say that the US government’s $2 billion Bitcoin transfer marked the end of the asset’s rally and that BTC is likely to fall into a new trading range. The possibility of a new all-time high is relatively low with increasing BTC exchange reserves.

Bitcoin supply on exchanges increases as selling pressure increases

Data from on-chain information platform Santiment shows that BTC reserves on exchanges rose to 1.92 million, up from 1.91 million at the end of July. The increase in supply on exchanges is characteristic of increased selling pressure, as a larger volume of BTC is available in exchange wallets for sale.

Bitcoin supply on exchanges vs price

Bitcoin slips into lower trading range, falls from $60,000 to $70,000

Analysts at 10xresearch identified the main market drivers for Bitcoin in July: Mt.Gox payouts and US political developments. With former US President Trump’s speech at the Bitcoin conference “failing to live up to the hype” and the government transferring nearly $2 billion into BTC, it likely marked the end of the asset’s rally.

After holding steady in the $60,000 to $70,000 range, Bitcoin dropped below the psychological support level. BTC likely experienced a decline and a new trading range between $50,000 and $60,000 was formed.

Amid US macroeconomic developments and expectations of crypto emerging as a “political issue” in the country, a new Bitcoin high is unlikely.

10xresearch analysts note:

“Although Bitcoin successfully tested the January ETF Bitcoin high with its low on Monday, August 5th at $49,100, we suspect that the trading range has moved lower towards the $50,000 to $60,000 range as Bitcoin ETF buying has dried up Stable coin flows only temporarily resumed this week.”