10x Research: Bitcoin may fall to $55,000

Odaily Odaily News 10x Research analyzed in its latest report why Bitcoin may fall to $55,000. The report said that Bitcoin has entered a downward trend since June 20, and trend-following funds (CTAs) also follow similar strategies and may build short positions aggressively. The size of their positions may even increase, especially when volatility decreases or is low. The realized volatility is only 30%. The report also pointed out that weekly and monthly indicators sent bearish reversal signals, indicating that the market is undergoing a broad adjustment. The relative strength index (RSI) on Bitcoin's weekly dollar chart has been declining since its peak in early March, while the monthly stochastic indicator shows a similar pattern to the peaks observed in January 2018 and May 2021.