Bitcoin, the leading cryptocurrency, broke the $60,000 support level and dropped sharply to below $54,000.
While there was a reaction to this decline, BTC rose above $ 57,000. 10x Research founder Markus Thielen, who correctly predicted Bitcoin’s decline to $ 55,000, announced his new analysis.
Stating that the $ 55,000 target for Bitcoin’s decline has been reached, the analyst said that a rally is possible as BTC appears to be oversold in the short term.
Stating that this increase in reaction is normal, Thielen stated that the rally may receive support from macroeconomic events next week.
Thielen also stated that the SEC may give the final approval necessary for the spot Ethereum ETF to start trading, “and this approval could trigger a positive momentum in the market in the short term.” said.
Despite these positive expectations, the analyst said that they do not believe that the developments do not indicate an important buying opportunity in the medium term.
“Our initial downside target of $55,000 was reached.
A countertrend rally is possible as Bitcoin appears to be oversold in the short term, with a possible macroeconomic support tailwind expected next week.
Additionally, the SEC may approve the Ethereum ETF, which could trigger positive momentum in the short term. “However, we do not believe this is a significant acquisition opportunity in the medium term.”
The analyst also pointed out some data regarding BTC’s decline. Markus Thielen pointed out that Bitcoin experienced a 20% decrease in June and 13% of the decrease occurred during Asian trading hours.
Similarly, Ethereum (ETH) fell 22%, with 16% of this decline occurring during Asian trading hours.
Stating that this situation shows that many retail traders in Asia have been liquidated, the analyst added that it also highlights the potential risks for retail investors in the Asian market, which bore the brunt of these declines.
*This is not investment advice.
