Bitcoin Price Predicted to Experience More “Pain” by Prominent Researcher
Markus Thielen, a cryptocurrency researcher at 10X Research, recently shared his predictions for the future of Bitcoin’s price. According to Thielen, Bitcoin has been in a downward trend since June 20th, and he outlined ten reasons why he believes the price could potentially drop to $55,000 in the near term. He also noted that many trend-following funds are observing the same signals and may be inclined to take short positions.
Interestingly, Thielen suggested that the outcome of the last presidential debate could impact Bitcoin’s price. While the debate seemed to favor Donald Trump, who has shown notable support for crypto and Bitcoin, Thielen believes that President Biden’s poor performance could increase the chances of a new Democratic candidate who could pose a tougher challenge in the upcoming November election.
Thielen also discussed the impact of seasonality on Bitcoin’s performance. Historically, the third quarter has been the weakest, with an average return of only 5% over the last 13 years. This is in contrast to the over 60% average returns observed in the second and fourth quarters.
Despite a disappointing price action in the second quarter, Thielen views it as a correction within a larger bull move. He highlighted that Bitcoin rose nearly fivefold from its January 2023 low, reaching an all-time high of $73,500 in mid-March this year.
As the crypto market closes out a lackluster quarter, analysts like Thielen anticipate more challenges ahead for Bitcoin. Thielen pointed to various indicators, such as weekly and monthly reversal indicators, which suggest a broader correction. He also mentioned that trend-following funds may pile on short positions, especially with falling or low volatility.
It’s important to note that this information is not investment advice. However, if you’re interested in investing in cryptocurrencies, you can register with Binance exchange with a 20% commission discount.
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