10X Research: Bitcoin continues to rise after falling to 63K, competing coins and meme coins have peaked in the short term

The analysis firm 10X Research has set a potential target price of $63,000 for Bitcoin and expects a resumption of the upward trend thereafter. In addition, after dominating the trading volume in South Korea, Dogecoin has shown signs of weakness. 10X Research believes that competing coins, like Dogecoin, may have reached a short-term peak.

Reasons for the Cryptocurrency Market Decline?

According to the latest report by 10X Research, several reasons have been attributed to the recent decline in Bitcoin over the past two days.

Bitcoin Breaking Highs and Lows

It pointed out that Bitcoin set a new high and then dropped below the previous day's low, forming an outside day pattern, indicating potential high volatility and divergence in trends.

Disappearance of Trading Signals, MicroStrategy's Overinflated Rise

10X Research mentioned that their trading signals have been turned off, making it harder to predict other sectors in the market. It also noted that MicroStrategy, compared to its Bitcoin holdings and the retracement rate of Bitcoin, is overpriced by 60 to 90%.

J.P. Morgan also shares a similar view:

MicroStrategy to issue another $500 million in convertible bonds with a conversion price as high as $2,327, J.P. Morgan concerned about bubble risks

Bitcoin May Drop to $63,000

Although Bitcoin ETFs are still experiencing net inflows, Bitcoin has failed to maintain its upward momentum during most U.S. trading sessions, with the lowest net inflow since March 14.

Considering these factors, 10X Research has set $63,000 as a potential target price, expecting a resumption of the uptrend thereafter.

Bitcoin briefly dropped to $65,000, and spot ETF net inflows remained sluggish for two consecutive days

ETH Not Looking Optimistic

The report also mentioned that ETH has recently benefited from the Denton upgrade, but post-upgrade, it still needs to address the weakness in Ethereum's on-chain fee revenue.

Despite Ethereum's impressive network fee performance during the DeFi boom in 2020 and the NFT craze in 2021, the current coin price seems disconnected from the weak fundamentals, as Ethereum's mainnet transaction volume and other fundamentals have not matched the price.

Ethereum Denton Cancun upgrade completed, multiple L2 solutions gradually corresponding updates

In addition, compared to Bitcoin, Ethereum ETF approval is also viewed pessimistically, with analysts estimating a mere 30% likelihood of approval. This could further drag down Bitcoin after the positive impact of the upgrade subsides.

Bloomberg Analyst: Probability of Ethereum spot ETF approval in May drops to 30%

Competing Coins, Meme Coins Near Short-Term Peak

The strong performance of Bitcoin in recent weeks has fueled the meme coin craze, with 10X Research pointing out that Shiba Inu coin SHIB has been the largest traded coin in South Korea for seven consecutive days.

However, as the market declines, trading volumes of Korean meme coins have also decreased. They believe that the meme coin frenzy closely related to the rise may have reached a short-term peak, indicating a further period of consolidation in the market.