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Cryptocurrency News Articles
Bitcoin (BTC) Price Dip Should Be Seen as a Buying Opportunity, Says Lekker Capital CIO
Oct 04, 2024 at 01:39 pm
Bitcoin's 6% drop since Sept. 30 should be seen as an opportunity for investors to stack more BTC, says Quinn Thompson.
Bitcoin’s 6% price drop since Sept. 30 is a buying opportunity for investors looking to accumulate more BTC, according to Quinn Thompson, the chief investment officer at Lekker Capital.
In an Oct. 3 post on X, Thompson said buying Bitcoin ( BTC ) at its current price range of $61,000 is a “no-brainer,” especially considering the “macro backdrop” for the cryptocurrency’s price action, which has shifted dramatically compared to past price drops.
He attached a chart showing Bitcoin’s price action since March 5, when BTC hit a new all-time high of $73,700.
Thompson highlighted three previous “similar setups” where the price of Bitcoin dropped and fell well below its 200-day moving average — a key technical indicator used by traders to gauge the mid-term strength of an asset. However, this time, BTC bounced sharply off the technical level, which showed a “clear invalidation on the back of a 180-degree shift in the macro backdrop,” according to Thompson, suggesting that prices could be poised to move up.
Earlier this week, escalating geopolitical tensions in the Middle East hit markets, with risk assets like Bitcoin selling off sharply as Iran took military action against Israel.
Growing concerns over the strength of the U.S. economy and uncertainty around the outcome of the U.S. election in November have also weighed on risk assets.
Geopolitical tensions, US elections favor Bitcoin ‘debasement trade’: JPM
Meanwhile, mentions of “Uptober” — a nickname given to October for its historically bullish crypto price action — have plummeted across social media as markets continue to pull back.
Other analysts also noted the lack of recent optimism, presenting an opportunity for a short-term bounce, according to Thompson’s analysis.
“Uptober excitement wanes as the market dips, which does open the door for a rebound. Whether the bigger downtrend is over remains to be seen,” said Santiment founder Maksim Balashevich.
While October has historically been a strong month for returns — averaging over 20% in the last 11 years — most of the gains come later in the month.
October and November are typically the best months for Bitcoin price performance. Source: CoinGlass
In the first half of October 2023, Bitcoin fell 7% to $26,650 but surged almost 30% in two weeks to close the month at $34,500, leading some traders to anticipate a sharp move up later this month.
Anti-aging tycoon Bryan Johnson almost devoted his life to crypto
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