While the leading cryptocurrency Bitcoin continues to hold above the $60,000 mark, some analysts believe it may have reached its bottom.
Currently, the latest analysis comes from Markus Thielen, founder of 10x Research.
Markus Thielen highlighted critical levels for Bitcoin's long-term directional movement. He stated that a monthly close above $63,000 would be a crucial signal confirming the bear market bottom has been reached.
"...The key metric for Bitcoin right now is $63,000. This price level will determine whether the bottoming is confirmed this month or the bear market continues."
At this stage, Thielen noted that Bitcoin's July closing price fell below this critical threshold, indicating the market has not yet given the final confirmation of a bottom.
According to Thielen, the current price is also below the 7-day and 30-day moving averages, and as it has fallen 3.2% over the past week, he still views the short-term trend as bearish.
Interest Rate Policy Could Pose a Risk to Bitcoin!
Thielen also pointed to macroeconomic events that could impact Bitcoin. He suggested that if the yield on 10-year US Treasury bonds continues to rise, the Federal Reserve may be forced to resume raising interest rates in September.
Thielen noted that persistently high interest rates could put pressure on risk assets, stating this is a substantial risk factor for digital assets like $BTC.
Selling Pressure Could Intensify!
Thielen also touched on factors that could create potential selling pressure on the Bitcoin market. In this context, the analyst highlighted potential pressure from mining companies and Bitcoin-holding companies as a potential issue.
He added that Bitcoin miners who have shifted their focus to the artificial intelligence (AI) sector own approximately 100,000 $BTC, and that liquidation actions by institutional companies managing Bitcoin could intensify selling pressure.
In conclusion, according to Thielen, for Bitcoin to re-enter an upward trend, it needs both to hold its technical levels and for favorable macroeconomic conditions to emerge.
*This is not investment advice.
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