10x Research: Bitcoin Falls Below Emotional Hype but Smart Money is Seeking Contrarian Opportunities

10x Research stated in its latest report that despite the increasingly strong narrative in the market that "Bitcoin has entered a bear market," a large number of traders are actually still maintaining long positions and are under pressure due to the current decline.

The agency pointed out that the currently popular "three years up, one year down" old cycle logic is being referenced again, but the key is whether a "crowded consensus expectation" has formed, thus creating opportunities for a contrarian layout. 10x Research mentioned that they turned bearish at the end of October, after which the implied volatility of Coinbase's stock significantly declined, demonstrating the typical characteristics of "sharp drops and sharp rises coexisting" in a bear market environment.

They emphasized that bear markets are highly challenging to navigate, but due to the extreme volatility, they often give rise to the best strategic opportunities. The report stated that Bitcoin is testing its long-term uptrend line, which has formed key bottoms every time it has touched this trend line in previous years, potentially marking a short-term or strategic turning point.

The key question now is no longer whether the market has entered a bear market, but rather "is this a position to accumulate on the dips, or a turning point that requires increased vigilance?"