Bitcoin (BTC) fell below $50,000 on Monday in a decline that started over the weekend.
The main reason for this decline is considered to be the Bank of Japan's interest rate increase and the sharp decline in the Japanese stock market, which exceeded 13 percent and has not been seen since 1987.
While the recovery in global markets also lifted Bitcoin and altcoins, BTC rose to over $ 57,000.
Investors Should Wait Until Bitcoin Price Drops Below $40,000!
However, 10X Reserach founder Markus Thielen, who attracted attention with his successful predictions, argued that for the ideal entry point for investors, the price should return to the levels seen when spot Bitcoin ETFs were launched in January.
At this point, according to Markus Thielen, Bitcoin investors should wait on the sidelines until the BTC price drops below $40,000 to capture the best entry point and price before the next bull run.
“We target Bitcoin prices to fall below 40,000 to determine the ideal entry time and point into the next bull market.
“We expect another major recovery attempt later.”
The Risk of Fall in Bitcoin Continues!
Stating that Bitcoin has made a good recovery and is trying to break the resistance of $ 57 thousand, Thielen said that despite the recovery, downside risks continue.
Pointing out that Bitcoin has experienced a sharp decline by breaking important support levels one by one in a recent period, the analyst stated that it will be more difficult to break the resistance levels after this sharp decline.
Markus Thielen stated that the $56,000 to $57,000 range is expected to be an important resistance level for BTC and a successful break of this range will be a positive sign for the rise.
“From a technical perspective, the 56,000/57,000 area is expected to act as a significant resistance for Bitcoin.
A close above this level would be a positive sign.
However, from a technical perspective there are still downside risks. Even the most optimistic investors must admit that recent lows have fallen further, with lows of $56,500 in May, $53,500 in July, and $49,100 in August indicating a deepening downtrend.
“In the face of ongoing decline risk, it is vital for investors with long positions to place a solid stop at $54,000.”
*This is not investment advice.