An analyst predicts that a further decline in Bitcoin’s price could ignite a surge to new highs.
Sell-Side Pressure Declines
According to the analyst, known as Checkmate, data shows a significant decrease in selling pressure since April. However, Bitcoin faces challenges in maintaining its upward trend due to a lack of new demand.
Catalyst for Demand
Checkmate suggests that lower prices could serve as a catalyst for increased demand. He explains that markets often require a “catalyst” to spark momentum, and lower prices can provide that incentive.
Bear Market Floor
The analyst predicts that Bitcoin may experience further declines before finding investor interest. He believes that a “bear market floor” could emerge, creating a foundation for a subsequent rally.
Conclusion
Checkmate emphasizes that markets typically need to experience downturns to fuel future growth. He believes that Bitcoin’s current price action is a necessary step towards finding the necessary demand to drive the next bull market.
