10x Research Hints at Bitcoin BTC’s Decline to $40,000 for Best Bull Market Entry

Head of Research at analytical firm 10x Research Markus Thielen shared his thoughts on Bitcoin BTC's possible price direction.

#Bitcoin Rebound Attempt Underway: Can It Last?

1-14) The Bitcoin crash on Monday reversed upon reaching the Bitcoin Spot ETF launch date on January 11/12, 2024, a key reference point in the market's recent history. Traders are focused on the technical aspects of price... pic.twitter.com/odGw2iEWfr

- 10x Research (@10x_Research) August 7, 2024

According to Thielen's post on X, BTC is attempting to recover from the recent price slump. However, he expects Bitcoin to dip close to $40,000 before the next major rally.

Bitcoin trades at $57,374,down 4.8% in the past 24 hours.CoinGecko data reveals thatit has lost 13.6% of its gains in the last seven days.

10X Research and Other Analysts Share Bitcoin Price Predictions

10x Research data reveals that Bitcoin's price slump reversed on Monday after it hit a critical resistance level. Markus Thielen noted that crypto traders must remember that price declines can be progressively deeper.

However, BTC continues its recovery effort, which is quite challenging given it fell below critical support levels recently. BTC touched a low of $56,600 in May, $53,500 in July, and $49,100 in August 2024, which aligns with Thielen's analysis.

Network economist Timothy Peterson shares Thielen's sentiment. Peterson believes Bitcoin can drop to $40,000 or rise to $60,000 within 60 days. However, he did not provide specific reasons for his predictions.

#Bitcoin $40k and $80k equally likely in the next 60 days. pic.twitter.com/ztq9MiERcv

- Timothy Peterson (@nsquaredvalue) August 5, 2024

Additionally, analyst Crypto Rover believes that if BTC drops below his chart's support level, it will decline to $40,000.

If #Bitcoin breaks this support, $40k is next. pic.twitter.com/nIsdTmr3rS

- Crypto Rover (@rovercrc) August 5, 2024

Meanwhile, Gemini partner David Gokhshtein stated that he would love Bitcoin to decline to $50,000 or $40,000. Gokhshtein regards such a price decline as the ideal opportunity to accumulate more Bitcoin before a price rally.

Bitcoin's $60,000 support level has been solid since March but dropped below this mark. Consequently, Thielen does not support a buy-and-hold strategy for BTC based on the expected price volatility.

Thielen believes that BTC's current price offers investors an opportunity to accumulate. Also, he suggests placing a stop loss at $54,000 since the risk of a price decline remains.

Renowned crypto analyst Ali Martinez also foresees a possible decline ahead for Bitcoin based on the TD Sequential Indicator. According to Ali's forecasts, Bitcoin exhibits a sell signal, likely translating into further price corrections.

The TD Sequential indicator shows a sell signal on the #Bitcoin 4-hour chart, suggesting a potential correction ahead! pic.twitter.com/LiPQu0FmP9

- Ali (@ali_charts) August 7, 2024

Bitcoin Volatility Hits 20-Month Peak Amid Price Struggles

The Bitcoin Volmex Implied Volatility Index rose to 97.14 on August 5, marking Bitcoin's highest volatility level since the FTX collapse in 2022. This increased volatility forced BTC to a low of $49,813.

Although Bitcoin has recovered to trade above $57,000, future traders still speculate about a further price decline. Coinglass data reveals that the put-to-call ratio is 1.13, with 46.94% calls and 53.06% puts.

For context, the put-to-call ratio measures the demand from sellers (put) against the buyers' (call) options. The higher percentage of Put options suggests that more traders are bearish on Bitcoin, expecting further downslides.

However, crypto analyst RektProof urges traders to be patient. He believes an aggressive sell-off will force a price decline for a while and lead to a sideways trend.

Aggressive sell off would assume price to stall for a bit and give us a range.

Looking for a similar build up as previous price action

Patience first#Bitcoin pic.twitter.com/xeAQRXBFuT

- RektProof. (@RektProof) August 6, 2024

Meanwhile, Bitgrow lab founder Vivek noted that global liquidity affects Bitcoin's price. He urged his followers to expect a significant price reversal soon.

Global liquidity reflects #Bitcoin price.

Expect a HUGE reversal soon pic.twitter.com/HKSG9VhMre

- Vivek (@Vivek4real_) August 5, 2024

Also, analyst Yoddha labeled Bitcoin's current price action as the best buying opportunity in 2024. So, BTC will likely rally again if more buyers accumulate the asset before a potential recovery.

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