Summary:
10x Research warns of a potential Bitcoin (BTC) downturn to $55,000.
Bitcoin entered a downtrend on June 20, suggesting trend-following funds might increase their short positions.
Weekly and monthly reversal indicators signal a broader correction.
Political uncertainty around crypto regulation in the United States could impact the market.
Institutional adoption has slowed, with inflows to Bitcoin ETFs less robust than anticipated.
Macroeconomic factors like the Federal Reserve's hawkish stance on interest rates could dampen enthusiasm for risk assets.
Seasonal trends historically show the third quarter to be the weakest for Bitcoin.
Stagnation in stablecoin inflows suggests a potential liquidity crunch.
Mining economics could force miners to liquidate Bitcoin holdings at a loss if sustained trading below the average minerâs breakeven cost.
Ethereum's outperformance relative to Bitcoin could lead to a sell-off after the catalyst has passed.
Expiration of $10 billion worth of Bitcoin and Ethereum options on June 28 could lead to increased price volatility.
Research firm 10x Research is warning of a potential Bitcoin (BTC) downturn to $55,000. The report highlights ten crucial factors that could contribute to bearish sentiment, including:
- Bitcoin entered a downtrend on June 20, based on a trend model followed by institutional investors. This suggests trend-following funds might increase their short positions.
- Weekly and monthly reversal indicators are signaling a broader correction. The weekly Relative Strength Index (RSI) has been declining despite Bitcoin maintaining levels above $60,000, while the monthly Stochastic oscillator is showing patterns similar to previous multi-month peaks.
- Political uncertainty around crypto regulation in the United States could impact the market.
- Institutional adoption has slowed, with inflows to Bitcoin ETFs less robust than anticipated.
- Macroeconomic factors like the Federal Reserve's hawkish stance on interest rates could dampen enthusiasm for risk assets.
- Seasonal trends historically show the third quarter (July, August, and September) to be the weakest for Bitcoin.
- Stagnation in stablecoin inflows suggests a potential liquidity crunch.
- Mining economics could force miners to liquidate Bitcoin holdings at a loss if sustained trading below the average minerâs breakeven cost.
- Ethereumâs outperformance relative to Bitcoin, following hints of potential ETH ETF approvals, could lead to a sell-off after the catalyst has passed.
- Expiration of $10 billion worth of Bitcoin and Ethereum options on June 28 could lead to increased price volatility.
The report warns of potential headwinds for the cryptocurrency market and suggests the need for further insights from upcoming industry events.
Comments