10x Research: Bitcoin may enter another 8-month fluctuation period, the market lacks "buy on dips" momentum

Odaily Planet Daily reports that Markus Thielen, the research director of 10x Research, stated that Bitcoin might repeat its performance in 2024 by entering a long period of consolidation after hitting a historical high. He pointed out that the current technical pattern of Bitcoin presents a "high tight flag" formation, which is usually considered as a bullish continuation pattern. However, the current structure shows some signs of weakness indicating an uncertain market state rather than purely bullish consolidation.

In addition to this, Thielen observed that there was no significant "buying on dips" sentiment shown in the US spot Bitcoin ETF market and lacked new capital inflow momentum. He believes most ETF funds mainly come from arbitrage-driven hedge funds and persistently low fund rates have reduced investors' willingness to add more money during recent pullbacks. According to Farside data, since Bitcoin fell below $90k at the beginning of March, about $1.66 billion has flowed out from US spot Bitcoin ETFs.

Bitcoin's current trading price is $84,290 USD which is down by 23% compared to its historic high point of $109k USD set in January. Whether or not bitcoin can resume its upward trend in short term remains unclear according to Thielen who advises investors to temporarily close their short positions at this stage but still lacks clear signals supporting strong rebound.

Meanwhile Arthur Hayes co-founder BitMEX predicted on March 10th that bitcoin could retrace back down towards $78k USD and if it falls below this support level then next key position would be at $75k USD . Iliya Kalchev Nexo research analyst thinks bitcoin may form more sustainable rebound basis around lower area near $70K.