Odaily Planet Daily News 10x Research published an article stating that from a technical analysis point of view, if ETH falls below the $3,725 level, a large number of stop-loss transactions may be triggered. ETH's current trend appears very fragile and has failed to rise further. Many newly established long positions have reached or fallen below the break-even point. Cryptocurrency enthusiasts generally call this technical pattern "Bart", that is, the price of a certain token needs to be sorted out after a sharp rise, at which time the price of the currency may fall sharply due to the triggering of stop-loss transactions. All three reversal indicators have turned bearish. Historically, June is the second worst month for ETH, with an average return rate of only -7% (the worst in September, at -12%), while the average returns of the other ten months are all positive. In summary, from different perspectives such as fundamentals, technical analysis, and cyclical conventions, now is not the best time to hold ETH. Another testimony to this conclusion is that the positions in the futures market are overstretched (biased towards longs). $3,725 will be a critical level for ETH (at which point we will close all long Ethereum positions), and if ETH falls below this level, we may see a large number of stop-loss trades being triggered, pushing the price of ETH further down, which may even drag Bitcoin down to new highs. In addition, 10x Research has emphasized its bullish case for BTC in three reports on May 21, May 26, and May 30. For traders, now is the time to take risks to get more Beta. As 10x Research predicted, Bitcoin mining-related stocks are also rising. Bitdeer rebounded 13% last night, influenced by Tether's $100 million financing (and the possibility of another $50 million), and Bitfarms, one of the major players in the industry, also rebounded. The US economy is slowing down, but this is actually a good thing at the moment. GDP growth is just over 1%; the ISM manufacturing index has been in contraction for several months; the employment front continues to weaken, which is having a negative impact on consumer spending; and last night there was a significant slowdown in job openings, another key and forward-looking employment indicator.All of this will lead to lower inflation. We will get more jobs data this Friday and the CPI inflation report next week. Bitcoin will move in the direction of the CPI (up, bearish; down, bullish), and if the CPI growth rate is 3.3% or lower, it will likely push Bitcoin to a new all-time high. Bitcoin has currently broken out of the smaller triangle range (purple line) in the figure below, and the larger triangle range (purple dashed line) may also be broken at around $71,500. If the decline in US employment or the decline in inflation can make the price of Bitcoin close above this line, 10x Research will firmly set the target price at a new high, which may be achieved between this Friday and next Wednesday. Therefore, 10x Research expects Bitcoin to hit a new all-time high (over $73,500) by the end of next week.
