A major drop in the price of Bitcoin could push the cryptocurrency to new highs

A crypto analyst predicts that a deeper decline could eventually cause Bitcoin (BTC) to rally to new highs.

In an interview for podcast "What bitcoin did” known analyst calling himself “Checkmate” noted that on-chain data showed a significant decline in selling pressure since April, when many were selling near all-time highs.

However Bitcoin struggling to maintain an uptrend due to lack of new demand.

Checkmate explained that despite less pressure from sellers, which theoretically makes it easier for bulls to push prices higher, Bitcoin did not rise due to insufficient demand.

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 the number one catalyst. Bitcoin is going lower and either there is a flash crash where people rush in to buy as seen in March 2020 or we are hitting the bottom of the bear market.

He added that the financial media often find external causes for market movements, but ultimately lack of demand is the main factor.