Bitcoin Could Dip to $40,000 Amid Market Turbulence: 10x Research
Analysts from 10x Research suggest that Bitcoin‘s (CRYPTO: BTC) price could potentially fall to the low $40,000s, signaling a significant downturn in the digital asset market.
What Happened: This prediction comes amid a complex backdrop of institutional involvement, technical indicators and macroeconomic factors influencing the cryptocurrency landscape.
The report highlights that despite the introduction of Bitcoin spot ETFs, which have seen an impressive $17 billion in net inflows, Bitcoin prices have struggled to maintain momentum.
This paradoxical situation has raised questions about the sustainability of current price levels and the potential for further declines.
The analysts point to several factors contributing to the bearish outlook.
Technical indicators, particularly the 21-week moving average currently at $61,824, suggest that Bitcoin is in bear market territory.
The cryptocurrency’s failure to maintain levels above this key indicator is seen as a troubling sign for short-term price prospects.
Moreover, the report notes that Bitcoin spot ETF investors, many of whom entered at an average price of around $60,000, are currently underwater.
This situation may deter further “buy-the-dip” behavior, potentially exacerbating downward pressure on the price.
The analysis also draws attention to Bitcoin’s correlation with the Nasdaq index.
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With the tech sector facing headwinds due to disappointing earnings growth and concerns about future profitability, there’s a possibility that Bitcoin could experience further declines in sympathy with tech stocks.
Political factors are also taken into consideration, with uncertainties surrounding the upcoming U.S. elections and potential regulatory changes adding to the market’s volatility.
While the report suggests that Bitcoin has already priced in much of the potential decline seen in tech stocks, it warns that Bitcoin’s higher beta could lead to even more significant drops, potentially reaching the low $40,000s.
What’s Next: The upcoming Benzinga Future of Digital Assets event on Nov. 19 is expected to provide a platform for industry experts to delve deeper into these market dynamics.
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