PANews reported on June 28 that Markus Thielen, CEO of 10x Research, analyzed in his latest report why he believes Bitcoin may fall to $55,000. The report said that Bitcoin has entered a downward trend since June 20, and trend-following funds (CTAs) also follow similar strategies and may establish short positions aggressively. The size of their positions may even increase, especially when volatility decreases or is low. The realized volatility is only 30%.
The report also noted that weekly and monthly indicators are sending bearish reversal signals, suggesting that the market is undergoing a broad correction. Bitcoin’s relative strength index (RSI) on the weekly dollar chart has been declining since its peak in early March, while the monthly stochastics oscillator shows a similar pattern to the peaks observed in January 2018 and May 2021.
