Bitcoin (CRYPTO: $BTC) has been facing significant headwinds recently, leaving investors wondering where the bottom lies. On Wednesday, the cryptocurrency was trading around $61,000 and has generally seen support at around the $60,000 mark this year. However, it hasn’t been trading this low since the Fall of 2024, with investors worrying about it potentially going even lower. Year to date, it’s down around 30%.
Those concerns could be well-founded, according to Markus Thielen, founder of 10x Research, who believes there is still more room for the cryptocurrency to decline lower, before eventually recovering.
Thielen believes that the strength of the U.S. dollar could pose a problem, as in the past, it has proven to be a headwind for the leading cryptocurrency. To make matters worse, the new chair of the Federal Reserve, Kevin Warsh, appears more hawkish than previously expected, with expectations now high that there could be multiple rate hikes this year. That could further weigh on Bitcoin’s fragile performance this year.
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The good news is Thielen doesn’t believe the downturn is going to get a whole lot worse. Based on liquidity trends, seasonal patterns, and macroeconomic conditions, Thielen believes that the low point may come sometime between late August and October.
So how low does Thielen think Bitcoin could go? He believes that Bitcoin may fall to as low as $55,000. While that suggests breaking well below the $60,000 support that it has largely had this year, it doesn’t suggest that upon doing so, it’ll lead to a more disastrous decline.
For investors, this could create a compelling case for buying the cryptocurrency in the near future.
