Markus Thielen noted that, according to his observations, since the summer, after the publication of data on business activity in the manufacturing sector, there has been a rollback of about 10% in the crypto market.
“In last week’s report, we briefly noted that Bitcoin appears to be overbought in the short term, as evidenced by elevated levels of the Fear and Greed Index. Current short-term reversal signals have turned bearish, indicating the possibility of a pullback over the next few days.”
Now production activity is falling, and may decline even further due to the dockers’ strike that began on September 30 in several of the largest US ports, which will negatively affect the crypto industry, the analyst noted.
“Forecast indicators have fallen to levels close to recession. This makes the upcoming manufacturing activity data highly uncertain: a fall below 48 would trigger another decline in Bitcoin, while a higher reading could fuel a rally.”
According to him, uncertainty in the crypto market is also increased by a possible increase in the key rate by the Bank of Japan as part of its policy of tightening monetary conditions.
Earlier, Markus Thielen said that over the next few months, the Bitcoin rate will be determined by the ISM Manufacturing Index, an indicator measured by the US Institute of Supply Management.
Source: Bits
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