[Analysis] Bitcoin Bear-Market Bottom May Be Approaching as Investors Misread Global Liquidity, 10x Research Says

Investors are misreading a global liquidity indicator closely tracked by Bitcoin market participants, while the cryptocurrency may actually be nearing a bear-market bottom, according to 10x Research.

In a recent report dated June 23, 10x Research said investors are misunderstanding the global liquidity gauge. The firm argued that the timing of a Bitcoin bottom is drawing closer.

The report said a strong U.S. dollar is weighing on the Bitcoin market. According to 10x Research, its dollar model has generated signals only six times since 2011, with the latest signal appearing in November last year. Bitcoin then declined for several months.

At the same time, the global liquidity indicator widely used by the market remains valid, the report said. It added that the gauge has recently continued to provide meaningful trading signals and that the next signal may also be nearing.

In particular, when the strong dollar, global liquidity flows and the macroeconomic backdrop are considered together, the likely timing and price range for this bear market's bottom are getting closer, the report said.

"This is not mere speculation but a data-based roadmap," the report said. "It can identify the period when Bitcoin is most likely to form its true value zone and a bear-market floor."