With the recent downward trend in Bitcoin, breaking below $112,000, 10x Research says a “stealth trigger” is quietly building pressure in the background that could lead to BTC’s most explosive recoveries.
“While markets focus on labor data and rate cuts, another force is quietly building pressure in the background,” it wrote on X, Monday.
The research noted that the catalyst is often overlooked and has the potential to reverse Bitcoin’s decline.
“Key technical levels are converging with overlooked macro dynamics, offering a potential setup for those who know where to look.”
BTC Major Rebound Mirrors Last Year’s Dynamics: Report
The month of August has historically been the weakest month, with 5–20% drops. The report compares the current setup to that of last year’s dynamics.
“Bitcoin has now corrected in line with typical August seasonality, coinciding with downward revisions to U.S. labor market data,” it noted, adding that the economy may be on shakier ground than investors had assumed.
Last year, Bitcoin’s weakness proved temporary after the Fed responded to early signs of cooling labor market.
The Fed softened with a surprise 50 basis point rate cut in September 2024, showing a long-term supportive backdrop for the BTC price. This momentum provided another near-term tailwind for Bitcoin.
As reported earlier, the Federal Reserve maintained interest rates at 4.25%-4.5% last week, triggering a market selloff.
10x Research noted that we would expect further declines in risk assets after the first rate cut in September. This will be followed by a sharp rebound once a cut becomes certain and is publicly validated by Fed officials, it added.
“In recent times, Bitcoin has proven its ability to weather turbulence inflicted by external factors, an encouraging sign of its increasing maturity,” Gadi Chait, Head of Investment at Xapo Bank, told Cryptonews. “Our conviction in Bitcoin’s long-term potential still stands, undeterred by short-term price fluctuations.”
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