 ▲ Bitcoin (BTC) ©Coin Leaders |
Cryptocurrency leader Bitcoin (BTC) is showing a clear downward trend, falling about 5% over the past week.
In relation to this, 10X Research, a cryptocurrency market analysis company, said in a recent report, "Bitcoin entered a downward trend on the 20th (local time), and trend-following funds may have potentially established short positions. The price could potentially fall. “It could fall further to $55,000,” he analyzed.
He continued, "So far, the realized volatility of short position entrants is low, and if BTC's volatility is low or the price falls further, the size of short positions may increase further. Weekly and monthly indicators have also reversed downward, suggesting that the market has entered a broad correction. “BTC’s relative strength index (RSI) based on USD weekly peaked in early March and then fell, and the Stochastic Index based on monthly candles is similar to the times when it peaked in January 2018 and May 2021.” did.
Markus Thielen, founder of 10X Research, also said, "BTC is currently severely oversold. The reasons include Mt. Gox's bond redemption scheduled for July, the German government's sale of BTC confiscations, miners' selling, and spot ETF net outflow. “In addition, there are macro factors that can have a greater impact on the market, which could lead to a more severe decline before a rebound.”
He predicted that it could fall to $50,000, saying, “The U.S. presidential election to be held at the end of this year and price stability may be factors for a bull market, but the possibility of a stronger adjustment still remains.”
