Hold Your Horses: ‘Buying The Crypto Dip Is Still Too Early’ Warns Top Analyst — Here’s Why
March 20 2024 - 7:30PM
NEWSBTC
Amid a recent downturn in the broader crypto market, the concept of
“buying the dip” has once again surfaced, tempting traders and
investors with the prospect of snagging assets at lower prices.
However, caution is the watchword from Markus Thielen, CEO of 10x
Research, a top analyst in the crypto space. Thielen’s latest
advisories suggest that the current market conditions may not yet
be ripe for the optimistic strategy of dip purchasing. Related
Reading: High-Stakes Week For Bitcoin And Ethereum As Central Bank
Decisions Approach: Key Predictions The Basis Of Bearish Sentiment
Thielen’s recent analysis, released earlier today, underscores a
bearish outlook on flagship cryptocurrencies Bitcoin (BTC) and
Ethereum (ETH), advising that it may be premature to buy the dip.
This guidance is rooted in a comprehensive approach to market
analysis, combining analog models, data-driven predictive models,
and objective analysis. At the heart of Thielen’s cautionary stance
is a detailed report outlining the factors contributing to the
firm, 10x Research’ bearish outlook on Bitcoin and Ethereum.
Despite a seemingly attractive price point for these
cryptocurrencies, Thielen believes the market has not yet bottomed
out, suggesting further declines before any significant rally. The
report pinpoints $63,000 and $60,000 as critical support levels for
Bitcoin. A breach below $60,000, Thielen warns, could precipitate a
fall into the $52,000-$54,000 range. Yet, despite these short-term
bearish indicators, Thielen remains optimistic about Bitcoin’s
potential, envisioning a climb to heights of over $100,000 within
the year. Thielen noted: Buying this dip is still too early.
Technically, we still expect Bitcoin to trade below 60,000 before a
more meaningful rally attempt is started. Based on the previous new
high signals, we could paint a rosy picture of 83,000 and 102,000
upside targets, but for the time being, we are more focused on
managing the downside. The Crypto Market’s Critical Juncture The
current state of the crypto market reflects a tense anticipation of
the upcoming central bank announcements from the US Federal
Reserve. This decision is expected to significantly influence
monetary policy and, by extension, the cryptocurrency market.
Particularly, insights from crypto futures exchange Blofin suggest
that the outcome of this announcement could sway market sentiment
substantially. Meanwhile, the market reacts in real-time, with
Bitcoin slightly increasing 2.4% in the past 24 hours but still
showing a notable decline over the past week. Adding to the
complexity of the market dynamics are observations from Alex
Krüger, a respected figure in macroeconomics and cryptoanalysis.
Related Reading: Bitcoin Might Be Poised For A ‘Double Pump Cycle,’
Reveals Analyst – Here’s Why Krüger attributes the recent price
collapse to several factors, including market over-leverage, the
negative sentiment ripple from Ethereum, and speculative fervor
around certain altcoins. These elements combine to paint a picture
of a market at a crossroads, with significant volatility and
uncertainty ahead. Reasons for the crash, in order of importance
(for those who need them) #1 Too much leverage (funding matters) #2
ETH driving market south (market decided ETF not passing) #3
Negative BTC ETF inflows (careful, data is T+1) #4 Solana shitcoin
mania (it went too far) — Alex Krüger (@krugermacro) March 20, 2024
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