10X Research: Bitcoin Continues to Rise After Dipping to 63K, Altcoins and Meme Coins Likely Peaked in the Short Term
Research firm 10X Research has set a potential target price of $63,000 for Bitcoin and expects it to recover its upward trend. Additionally, after dominating the trading volume in South Korea, meme coins have shown signs of decline. 10X Research believes that competing coins and meme coins may have reached a short-term peak.
Reasons for the Cryptocurrency Market Decline?
According to the latest report by 10X Research, several factors are attributed to the recent decline in Bitcoin over the past two days.
Bitcoin Takes a Hit
The report points out that Bitcoin reached a new high and then fell below the previous day’s low, forming an outside day pattern, indicating a potential highly volatile and polarized trend.
Trading Signals Disappear, MicroStrategy’s Surge is Too High
10X Research states that their trading signals have been shut down, and it has become increasingly difficult to predict the market in other sectors. MicroStrategy’s stock price has risen 60% to 90% higher than its reasonable price, considering its Bitcoin holdings and the magnitude of Bitcoin’s pullback.
JPMorgan Chase shares a similar view, expressing concerns about bubble risks as MicroStrategy issues another $500 million convertible bond with a conversion price of up to $2,327.
Bitcoin Might Drop to $63,000
Although Bitcoin ETFs still maintain net inflows, Bitcoin has been unable to sustain its upward momentum during most of the US trading sessions. Additionally, on March 14, it experienced the lowest net inflows since March. Considering these factors, 10X Research sets a potential target price of $63,000 and expects a recovery in the upward trend.
ETH Not Optimistic
The report also mentions that ETH has recently benefited from the Dencun upgrade. However, after the upgrade, it still needs to address the weakness in Ethereum’s on-chain fee revenue. Despite Ethereum’s impressive performance in network fees during the DeFi craze in 2020 and the NFT boom in 2021, the current coin price seems disconnected from the weak fundamentals. The fundamental factors of the Ethereum mainnet, such as transaction volume, have not matched the price.
Furthermore, compared to Bitcoin, the prospects for an Ethereum ETF are seen as dim, with analysts estimating only a 30% chance of approval. This could further drag down Bitcoin after the positive impact of the upgrade fades.
Competing Coins and Meme Coins Reach Short-Term Peak
Bitcoin’s strong performance in recent weeks has sparked a meme coin frenzy. 10X Research points out that Shiba Inu coin (SHIB) has become the largest traded coin in South Korea for seven consecutive days. However, as the overall market declines, trading volume for meme coins in South Korea has also decreased. They believe that the frenzy surrounding competing coins closely related to the surge may have reached a short-term peak, indicating that the market will undergo further consolidation.
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