In its latest report, 10x Research analyzed the reasons why Bitcoin could fall to $55,000. The report stated that Bitcoin has entered a downtrend since June 20, and trend-following funds (CTAs) that follow similar strategies may aggressively build short positions. The size of their positions may even increase, especially when volatility decreases or is low. The realized volatility is only 30%. The report also pointed out that weekly and monthly indicators sent bearish reversal signals, indicating that the market is undergoing a broad adjustment. The relative strength index (RSI) on Bitcoin's weekly dollar chart has been declining since its peak in early March, while the monthly stochastic indicator shows a similar pattern to the peaks observed in January 2018 and May 2021.