Markus Thielen, CEO of 10x Research, has issued a warning to investors and traders as the cryptocurrency market experiences a downturn. Noted for his precise market predictions, Thielen, who had previously anticipated significant price movements in Bitcoin and Ethereum, suggests a deliberate approach during the current slump.
Market Struggles Call for Tactical Patience
Thielen’s recent report, dated March 20th, outlines the reason behind the declining prices of Bitcoin and Ethereum, urging market participants to exercise caution when considering buying the dip. He particularly points out that Bitcoin’s critical support levels are at $63,000 and $60,000, and warns of a possible descent to the $52,000 to $54,000 zone should Bitcoin slip below the $60,000 mark. Despite the allure of lower prices, Thielen advises against premature investment moves.
10x Research, Thielen’s firm, is renowned for its use of diverse data, predictive analytics, and unbiased analysis to project market trends. The company stands by its long-term bullish projections for Bitcoin, with targets at $83,000 and $102,000, indicating the likelihood of a substantial upsurge if conditions align.
Predicting Heightened Fluctuations Ahead
The market’s upcoming volatility is attributed to factors such as the Federal Open Market Committee’s (FOMC) meeting outcomes and the anticipated policy decisions on interest rate cuts. Additionally, the forthcoming expiration of Bitcoin options and futures positions is expected to sway the cryptocurrency’s price dynamics. Investors are keeping a vigilant eye on the FOMC for clues about interest rate reductions, which could markedly affect Bitcoin’s valuation. The current options trends reveal that investors are preparing for possible price drops, with purchase of put contracts at $58,000 indicating a bearish outlook.
With Bitcoin trading volumes diminishing and spot Bitcoin ETFs experiencing net outflows, the cryptocurrency remains highly volatile and on a downward trajectory. Presently, according to CoinMarketCap, Bitcoin has witnessed a 14% decline over the past week. As of now, Bitcoin’s trading price is at $63,177, with day’s trading range between $60,807 and $65,757.