A cryptocurrency analyst predicts that further declines could eventually lead Bitcoin (BTC) to rebound to new highs.
In an interview with the podcast “What Bitcoin Did,” known analyst, self-described as “Death Knell,” noted that on-chain data indicates a significant reduction in selling pressure since April, when many sold near historic peaks.
However, Bitcoin struggles to maintain an upward trend due to a lack of new demand. Checkmate explained that despite reduced selling pressure theoretically making it easier for bulls to raise prices, Bitcoin has not risen due to insufficient demand.
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He believes BTC needs to reach lower levels to attract investor interest and gather momentum for the next bullish phase:
“Markets typically need a catalyst. Lower prices are catalyst number one. Bitcoin either crashes and people rush in to buy, as seen in March 2020, or we hit the bottom of the bear market.”
He added that financial media often find external reasons for market movements, but ultimately, the lack of demand is the primary factor.
