10x Research has released its latest analysis, stating that Bitcoin has been experiencing a period of volatility characterized by four lower highs since March.
10x Research: Bitcoin’s Downtrend Could End If It Breaks Above $65,000, Altcoins Expected to Recover Strongly in Q4
According to the report, Bitcoin breaking above the $65,000 level could signal an end to the current downtrend and the cryptocurrency could target $70,000 again.
Analysts point out that changes in the investment environment have triggered the search for high-risk, high-return assets.
The report states that Bitcoin has entered the overbought territory in the short term after its rapid rise on September 9.
However, following the corrections that have continued since March, it is stated that medium-term reversal signals now indicate that the downtrend may be ending.
With these technical indicators nearing bottoms, the possibility of a break above $65,000 has increased significantly. If that happens, Bitcoin could reach new highs and high-beta altcoins could see a sharp reversal.
Strong Recovery Expected in Altcoins
Ethereum is also exhibiting similar technical corrections, suggesting that despite weak fundamentals, Ethereum still has growth potential.
Although Ethereum is not expected to reach a new all-time high, a sharp recovery seems possible with bottoming signs in technical indicators.
The interest in decentralized finance (DeFi) and high-beta tokens suggests a shift in market trends following possible interest rate cuts from the Federal Reserve.
With this change, altcoins are expected to perform better and gain momentum behind Bitcoin.
With Bitcoin surpassing $60,000 and targeting $65,000, smart investors have started accumulating undervalued altcoins like TAO, ENA, SEI, APT, SUI, NEAR, and GRT.
Traders are trying to seize this opportunity as the strong recovery is expected in the fourth quarter.
With central banks moving to support economies, investors are starting to focus on a potential DeFi recovery from Bitcoin and yield-generating tokens (RWA).
*This is not investment advice.