Bitcoin Price Predicted to Experience More “Pain” by Respected Researcher
Prominent cryptocurrency researcher Markus Thielen has made predictions about the future price of Bitcoin, stating that the cryptocurrency has been on a downward trend since June 20. Thielen has outlined ten reasons why he believes the price of Bitcoin could potentially drop to $55,000 in the near future. He also noted that many trend-following funds are observing similar signals and may be tempted to take short positions.
Interestingly, Thielen highlighted the impact of the recent presidential debate on Bitcoin’s performance. While Donald Trump has expressed support for cryptocurrency and Bitcoin, Thielen suggested that President Biden’s poor performance in the debate could increase the chances of a new Democratic candidate who may pose a tougher challenge in the upcoming November election.
Thielen also discussed the impact of seasonality on Bitcoin’s performance, noting that historically, the third quarter has been the weakest with an average return of only 5% over the past 13 years. This is in contrast to the average returns of over 60% observed in the second and fourth quarters.
Despite a disappointing second quarter, some analysts view the recent price action as a correction within a larger bull market. Bitcoin has experienced significant growth, rising nearly fivefold from its January 2023 low to reach an all-time high of $73,500 in mid-March of this year.
As the crypto market enters a lackluster quarter, experts like Thielen believe there may be more challenges ahead. 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 is important to note that these predictions are not investment advice. However, for those interested in investing in cryptocurrencies, Binance exchange offers the opportunity to trade over 300 cryptocurrencies with a 20% commission discount.
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