10x Research: Bitcoin may attempt to breakout again, market technicals are improving

Odaily News Bitcoin attempted a rebound yesterday but failed to break out of its triangle structure, 10x Research said in its latest analysis. However, with the election odds changing and a slightly favorable risk environment, Bitcoin may attempt another breakout. Nonetheless, significant risks still loom that could lead to a pullback later in September and a possible rebound before the end of the year. All three of our reversal indicators show a strong rebound with momentum above their slower moving averages, an encouraging sign that the market technicals are improving. Bitcoin's rise toward $65,000 is achievable. However, we will closely monitor the direction of the triangle breakout. Risk management remains critical. As expected, long exposure to perpetual futures contracts is limited after the sharp decline around the August 5 crash. Ethereum open interest remains relatively unchanged, while a small number of short positions in Bitcoin are likely to be covered, which could push Bitcoin's price higher. On the bright side, derivatives positions are no longer overextended, unlike in late July, when an over-leveraged correction was inevitable.