The price of Bitcoin fell more than 3% on Monday amid panic selling by investors at the start of a key macro week in the United States.
Bitcoin dropped from around $65,000 to $63,200 today, and according to 10x Research, the drop appears to be a typical bull market pullback caused by overbought conditions.
Speaking to Coindesk, 10x Research founder Markus Thielen noted in his report last week that Bitcoin was showing signs of being overbought in the short term, but that this decline was short-term.
“We noted in last week’s report that BTC appeared to be overbought in the short term, as reflected by rising levels of the Greed & Fear index.
“Current short-term reversal signals have turned bearish and suggest a pullback is likely in the next few days. However, we think the correction will be short-term.”
The incident that has been happening since June is happening again!
Markus Thielen stated that the recent decline is also linked to the US ISM data to be released this week, and pointed out that the Bitcoin price has fallen by 10% since June, in the first week of the month when the US ISM Production data was published.
Thielen stated that the bullish expectations for Bitcoin for the fourth quarter are valid, and said:
“The US ISM Manufacturing data shows forward-looking indicators have fallen to near recessionary levels. This makes tomorrow’s data quite uncertain. If the data falls below 48.0, it could lead to another drop in Bitcoin, while a higher number could trigger a rally.”
*This is not investment advice.