Cryptocurrency researcher Markus Thielen spoke about the future of Bitcoin price in his statement.
Bitcoin, the world’s largest cryptocurrency, has been on a downward trend since its inception, according to Markus Thielen, a researcher at 10X Research. June 20.
Thielen gave ten reasons Why is Bitcoin price likely to drop to $55,000 next time. He noted that many funds observed similar signals and held short positions.
Thielen said President Biden’s poor performance could increase the chances of a new Democratic candidate mounting a tougher challenge to Trump in the upcoming November election.
Thielen also noted the impact of time on Bitcoin performance. In history, Q3 is the weakest quarter with an average return of just 5% over the past 13 years, in stark contrast to the average return more than 60% in the second and fourth quarters.
Despite the disappointing price action in Q2, this can be seen as a correction in a larger bullish move. It is worth noting that Bitcoin has increased nearly 5 times from a low in January 2023, reaching an all-time high of $73,500 in mid-March this year.
When the Crypto Market Closes a quarter gloomy, analysts like Thielen believe there may be more challenges ahead.
Thielen believes this is one of the reasons for BTC’s decline:
“Weekly and monthly reversal indicators point to a broader correction. Weekly RSI peaked in early March and has been falling despite Bitcoin remaining above $60,000. Monthly stochastics are similar to previous multi-month highs like January 2018 and May 2021.
According to our trend model, Bitcoin entered a downtrend on June 20. While not all signals were successful, trend following funds (CTAs) often follow a similar strategy and may move into short positions. Position size is likely to increase, especially when prices are falling or when volatility is low. Actual volatility is only 30%.”
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