10x Research: The $56,000/$57,000 area is expected to become a significant resistance level for Bitcoin

10x Research stated in its latest report that Monday's Bitcoin plunge is a key reference point in the market's recent history. Traders focus on the technical aspects of price changes, and even the most optimistic cryptocurrency traders must admit that declines are getting larger: The low in May was $56,500, July was $53,500, and August was $49,100. Although Bitcoin is currently trying to recover, after breaking through recent support levels, strong resistance from a clear downward trend may be more challenging. Our bearish outlook stems from monthly technical indicators which have reached historical reversal levels seen in past bull markets (such as January 2018 and April 2021) by May 2024.

We can only confirm this several months later. However, it has cyclically affected our expectations for price drops in April, June and August 2024. From a technical perspective,the area around $56k-$57k is expected to become significant resistance for Bitcoin; exceeding this level would be a positive signal. However,due to the general downside risk shown by incomplete technical indicators,it's crucial to set firm stop losses for long positions ($54k).