A cryptocurrency analyst predicts that a further decline may eventually lead to a new high for Bitcoin (BTC).
In an interview with the podcast “What Bitcoin Did,” a well-known analyst calling himself “Checkmate” noted that on-chain data has shown a significant decrease in selling pressure since April, when many were selling near historical highs.
However, Bitcoin has struggled to maintain an upward trend due to the lack of new demand.
Checkmate explained that despite the reduced selling pressure, which theoretically makes it easier for bulls to raise prices, Bitcoin has not increased due to insufficient demand.
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He believes that BTC needs to reach lower levels to attract investor interest and gain momentum for the next phase of the bull market:
Markets usually need a catalyst. Lower prices are catalyst number one. Bitcoin decreases, and either a flash crash occurs, where people rush to buy, as seen in March 2020, or we reach 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 main factor.
