Bitcoin Reaches Downside Target; Short-Term Rally Expected but Mid-Term Caution Advised

Summary:
Bitcoin has recently hit a downside target of $55,000, appearing oversold in the market. Short-term countertrend rallies are expected, bolstered by macroeconomic factors and potential SEC approval of an Ethereum ETF. However, 10x Research warns that Bitcoin is not a mid-term buying opportunity despite these catalysts. CEO Marcus Thielen predicts significant developments around Ethereum ETFs, with six applicants updating S-1 forms, indicating imminent SEC approval. A softer US Consumer Price Index (CPI) report is also anticipated.
10x Research’s report suggests a possible market recovery, citing oversold indicators and a Relative Strength Index (RSI) of 38%, though caution is advised if Bitcoin fails to breach the $60,000-$62,000 range. Historically, Bitcoin has weakened in August and September, with potential rate cuts possibly pushing it near $60,000. Two upside catalysts—US CPI data and Ethereum ETF approval—might trigger a brief rally.
Despite lower CPI readings, Bitcoin’s price has experienced declines, with the next CPI print expected to decelerate further. Investors are increasingly focused on Ethereum’s ETF prospects, which may impact Bitcoin. Regulatory decisions on Ethereum ETFs and broader market dynamics will be crucial for Bitcoin’s future trajectory.