Bitcoin’s sharp decline is not over yet? 10x Research warns that opportunities may fall again in the past week

As the monthly line is about to close, the Bitcoin price has encountered a pullback. According to CoinMarketCap data, Bitcoin was quoted at $63,800 before the deadline, with a 24-hour decline of nearly 3%. Reviewing the recent trend, Bitcoin has been steadily rising since the Federal Reserve announced a rate cut. Regarding this drop, the research firm 10x Research stated that it is a typical overbought pullback. The report indicates that Bitcoin faced selling pressure in the early European session, breaking below the bullish trend line support, and suggests that this movement is reminiscent of the price behavior before the release of key US data in the past few months. Tonight, Federal Reserve Chairman Powell will deliver a speech at the National Business Economics Association's annual meeting in Tennessee, and the non-farm payroll report will be released on Friday, with Powell previously stating that the job market is a key indicator the Fed is focusing on. According to 10x Research data, this decline is a typical bullish pullback after an overbought condition. Markus Thielen, the founder of 10x Research, said, "In last week's report, we pointed out that BTC appears to be overbought in the short term. As reflected in the rise of the Greed and Fear Index, the reversal signal has turned bearish, indicating that a correction may occur in the next few days." Markus Thielen added, "Since June, the characteristic of the first week of each month (i.e., the release of the US ISM manufacturing data) has been a 10% price drop. This drop is consistent with this pattern." The September report will be released on October 1st and is expected to show that manufacturing data continued to tighten in the last month of the third quarter. "The ISM manufacturing data shows that the forward-looking indicator has fallen to near-recessionary levels, making tomorrow's data highly uncertain. If it falls below 48.0, it could cause Bitcoin to drop again, while a higher number could drive a rebound," Markus Thielen said. However, 10x Research still maintains a bullish outlook for the fourth quarter, with the optimism largely stemming from the expectation that the Federal Reserve will cut rates again and China's recent announcement of large-scale stimulus measures.