Bitcoin Needs To Cross New 'Line In The Sand' To Confirm It Was A 'Fake Dip': 10x Research

Author: Ivan Crnogatić | May 03, 2024 03:34pm

Crypto research firm 10x Research on Thursday highlighted a crucial chart that Bitcoin (CRYPTO: BTC) traders should be monitoring closely.

What Happened: In its latest newsletter titled “Fake Dip?” 10x Research pointed out that Bitcoin’s relative strength has retraced back to 40%, which has been associated with rally attempts on three occasions since early 2023.

The firm also identified a new “line in the sand” at $62,000, where they might change their view if Bitcoin fails to break above this level quickly.

The newsletter mentioned four instances where Bitcoin broke below a triangle support level but quickly reversed due to various bullish news or events:

• Treasury Secretary Janet Yellen’s proposal for uncapped deposit insurance.
• Blackrock’s filing for a Bitcoin ETF.
• Franklin Templeton joining the Bitcoin ETF race.
• A drop in U.S. Core PCE below 3.0%.

Read Also: ‘Rich Dad Poor Dad' Author Robert Kiyosaki Unveils His Bitcoin Strategy Amid Market Crash: ‘The Best Time To Get Rich'

Why It Matters: The current triangle breakdown appears more severe than the previous four instances, and the distribution pattern resembles a top rather than a sideways move.

10x Research’s trend model is currently in a downtrend, similar to January 2024, while it was in a bull trend during the other three dips.

The research firm emphasizes that the longer Bitcoin stays below the $62,000 level, the more difficult it will become to break above it again. While their three reversal indicators remain bearish, they are open to the possibility of buying this dip if Bitcoin falls deep enough or rallies, although this is not their base case scenario.

The research firm had previously cautioned that prices might fall another 20% and drop into the low $50,000s.

What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Now Read: Why Bitcoin Spiked Above $62,000 Following The April Jobs Report

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.

Posted In: $BTC