Renowned Researcher Says More "Pain" Will Be Seen in Bitcoin Price, Shares Predictions

Cryptocurrency researcher Markus Thielen discussed the future of Bitcoin price in his statement.
Renowned Researcher Says More Pain Will Be Seen in Bitcoin Price, Shares Predictions

Bitcoin’s Future Outlook and Market Insights: Expert Analysis by Markus Thielen

Markus Thielen, a researcher at 10X Research, discussed the future of the world’s largest cryptocurrency Bitcoin since it entered a downward trend from June 20th. Thielen identified ten reasons why Bitcoin’s price could potentially drop to $55,000 in the near term. He noted that many funds tracking trends have observed similar signals and may be inclined towards taking short positions.

Interestingly, recent presidential debates seemed to favor Donald Trump, who has expressed significant support for crypto and Bitcoin lately. However, Thielen suggested that President Biden’s weak performance could increase the chances of a new Democratic candidate posing a tougher challenge in the upcoming November elections.

Thielen also emphasized the seasonal impact on Bitcoin’s performance, highlighting that historically, the third quarter has been the weakest period with an average return of only 5% over the last 13 years. This contrasts sharply with average returns of over 60% observed in both the second and fourth quarters.

Despite disappointing price movements in the second quarter, it could be viewed as a correction within a larger bullish movement. It’s worth noting that Bitcoin surged approximately fivefold from its lowest point in January 2023 to an all-time high of $73,500 in mid-March this year.

As the crypto market closes a lackluster quarter, analysts like Thielen believe there could be further challenges ahead.

Thielen identified one of the reasons for BTC’s decline as follows:

“The weekly and monthly reversal indicators point to a broader correction. The weekly RSI peaked in early March and declined despite Bitcoin staying above $60,000. Monthly Stochastics resemble previous multi-month peaks like January 2018 and May 2021.

According to our trend model, Bitcoin entered a downtrend on June 20th. While not every signal is successful, trend-following funds (CTAs) may adopt a similar strategy and pile into short positions. Particularly, position sizes could increase amidst falling or low volatility. The realized volatility is currently only 30%.”

Note: This is not investment advice

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