Bitcoin Bottom Likely Near Despite Strong Dollar Headwinds

Bitcoin's market performance has been heavily impacted by the strong U.S. dollar in recent weeks, but analysts at 10x Research believe that a market bottom may be nearing.

The firm's analysis points to global liquidity (M2) indicators as a key factor in determining market trends, and notes that traders have misinterpreted these signals in the past.

The M2 indicator measures total money supply, including cash, checking deposits, and easily convertible near-money. According to 10x Research, this indicator flashed a buy signal in early March and a sell signal at the end of April, suggesting that the worst of the sell-off may be over.

Combining the DXY dollar index rally with liquidity trends, 10x Research views this as a potential buying opportunity for crypto investors. However, analyst Markus Thielen cautions that further volatility and external catalysts could still derail the recovery.