“It’s still too early to buy the decline in cryptocurrencies,” a top analyst warns
Amid the recent widespread crypto market downturn, the concept of “buying on the edge” has re-emerged, luring traders and investors with the prospect of grabbing assets at lower prices. But for Markus Thielen, CEO of 10x Research, a top cryptocurrency analyst, caution is the watchword.
Thielen's latest recommendations suggest that current market conditions may not yet be ripe for an optimistic strategy of buying on the spur of the moment.
The basis for bearish sentiment
Thielen's latest analysis, published earlier today, highlights a bearish outlook for leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH), advising that buying on the edge may be premature. .
This guidance is based on a comprehensive approach to market analysis that combines analog models, data-driven predictive models, and objective analysis.
Central to Thielen's cautious stance is a detailed report outlining the factors behind 10x Research's bearish outlook on Bitcoin and Ethereum.
Despite the seemingly attractive prices of these cryptocurrencies, Thielen believes the market has not bottomed out yet, suggesting further declines could occur before a significant rally. There is.
The report identifies $63,000 and $60,000 as key support levels for Bitcoin. Thielen warns that if the price falls below $60,000, it could fall to the $52,000 to $54,000 range.
However, despite these short-term bearish indicators, Thielen remains optimistic about Bitcoin's potential and envisions it rising to heights above $100,000 by the end of the year. Thielen pointed out that:
It's still too early to buy this trending buy. Technically, Bitcoin is still expected to trade below 60,000 before a more meaningful upward attempt begins. We could paint a rosy picture of upside targets at 83,000 and 102,000 based on previous new high signals, but for now we are focused on managing the downside.
A critical crossroads in the virtual currency market
The current situation in the crypto market reflects nervous expectations for upcoming central bank announcements by the US Federal Reserve.
This decision is expected to have a major impact on monetary policy and, ultimately, the virtual currency market. In particular, insights from crypto futures exchange Blofin suggest that the outcome of this announcement could significantly sway market sentiment.
Meanwhile, the market is reacting in real time, with Bitcoin up slightly by 2.4% in the past 24 hours, but still showing a notable decline over the past week. An observation by Alex Krueger, a prominent figure in macroeconomics and cryptoanalysis, adds to the complexity of market dynamics.
Krueger attributes the recent price crash to several factors, including market overleverage, ripples of negative sentiment from Ethereum, and speculative frenzy surrounding certain altcoins. These factors combine to paint a picture of a market at a crossroads with significant volatility and uncertainty.
Crash reasons (in order of importance)
(For those who need it)
#1 Too much leverage (funds are important)
#2 ETH leads the market (market decides that ETF will not pass)
#3 Negative BTC ETF inflows (note data is T+1)
#4 Solana's shitty coin mania (went too far)— Alex Kruger (@krugermacro) March 20, 2024
Featured image from Unsplash, chart from TradingView
