As the monthly line is about to close, the price of Bitcoin is experiencing a retracement. According to CoinMarketCap data, Bitcoin was quoted at 63,800 at press time, a 24-hour drop of nearly 3%. Looking back at recent trends, Bitcoin has been on a steady upward trajectory since the Federal Reserve announced an interest rate cut. Regarding this decline, the research institution 10x Research said that it was a typical retracement of overbuying.
Following the trend of the past few months before the release of economic data, Bitcoin faced selling pressure during European time
The report pointed out that Bitcoin faced selling pressure during early European trading hours and fell below the support of the bullish trend line, saying that the move was reminiscent of price action in the past few months before the release of key U.S. data. Tonight, Federal Reserve Chairman Powell will speak to the National Association of Business Economics at the annual meeting in Tennessee. On Friday, the non-farm payrolls report will be released. Earlier, Powell said that the labor market is the current Fed policy. Focus on indicators.
According to 10x Research, the dip is a typical bullish retracement after overbought conditions.
Markus Thielen, founder of 10x Research, said: “In last week’s report, we stated that BTC appeared to be overbought in the short term. As reflected by the increase in the Greed and Fear Index, the reversal signal has turned bearish, indicating that the next few days may There will be a callback.”
There are two major changes in the market in the past week. 10x Research maintains its optimistic outlook for the fourth quarter.
Markus Thielen added: “Since June, the first week of every month (when US ISM manufacturing data is released) has been characterized by a 10% price drop. This drop is consistent with this pattern.”
The September report is due out on Oct. 1 and is expected to show continued tightening in manufacturing data in the final month of the third quarter. “ISM manufacturing data showed that forward-looking indicators have dropped to near-recession levels, making tomorrow’s data uncertain. A break below 48.0 could send Bitcoin lower again, while higher numbers could fuel a rebound ” said Markus Thielen.
However, 10x Research still maintains a bullish outlook for the fourth quarter. Much of the optimism for the fourth quarter comes from expectations that the Federal Reserve will cut interest rates by another two-digit rate and China's recently announced large-scale stimulus measures.
This article: Bitcoin’s sharp decline is not over yet? 10x Research warns that stocks may fall again in the past week or two. This first appeared on Chain News ABMedia.
