The cryptocurrency market is experiencing a new wave of turbulence, and investors are wondering whether it is safe to re-enter the market. According to Markus Thielen from 10X Research, the answer is not yet.
Thielen, who correctly predicted the last decline, continues to be cautious about buying the dip. Drawing parallels between the collapse of the decentralized finance (DeFi) and non-fungible token (NFT) sectors after the 2021 bull market and the current market conditions. This decline had a serious impact on Ethereum (ETH) and now a similar pattern is emerging in meme coins, affecting tokens associated with Solana (SOL).
Thielen said in a report released today, “This structural decline indicates a weakening foundation and now is not the time to be complacent, but to be cautious.” He predicted that Bitcoin will steadily move towards $73,000(BTC), but said that a new trend will be necessary to trigger the next major rally.
Thielen also pointed to historical patterns by comparing the current market cycle with previous declines. “It’s not just the familiar macro backdrop of the Fed turning hawkish near the peak of the Bitcoin cycle, but also the micro dynamics where the fundamental narratives are being lost. Individual investors are facing a game they cannot win,” he said.
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