Bitcoin has declined over 6% in the last seven days, slipping off the $66,000 threshold attained in late September. This downturn has sparked fear among investors, triggering a significant sell-off.
Quinn Thompson, the chief investment officer at Lekker Capital, says this week’s Bitcoin dip is nothing compared to previous downturns. Thompson believes investors should see the current dip as an opportunity to buy more Bitcoin.
Accumulating BTC Now Is a No-Brainer, Thompson Says
Bitcoin currently trades around $61,300 as market fears remain amid rising tension in the Middle East. In an X post, Quinn Thompson of Lekker Capital says one shouldn’t think twice before buying Bitcoin at the current price.
He noted that the macro backdrop of Bitcoin’s price action has significantly shifted compared to previous price drops.
The investment expert said: “I don’t usually give very short-term views, but it seems like a no-brainer to be bidding this area with the clear invalidation of a 180-degree shift in the macro backdrop from the relative to the three previous similar setups.”
Thompson attached a chart showing Bitcoin’s price action since March when it reached its new all-time high of $73,750. He highlighted similar setups on three previous occasions when Bitcoin plummeted below the 200-day MA, a critical indicator that gauges an asset’s mid-term momentum.
However, this time is different. Bitcoin has bounced off the 200-day MA, which Thompson believes is a 180-degree shift in its macro backdrop from the previous price movements. The bounce above the 200-day MA suggests a significant price increase soon.
Thompson believes now is the time to buy more Bitcoin before an imminent upswing.
While buying BTC now seems tempting, given the optimistic analysis, the rising tension between Israel and neighboring Middle East countries has shaken the market.
Bearish investor sentiments have triggered intense sell-offs for risk assets like Bitcoin. The widespread concerns over the weakening US economy and uncertainty surrounding the upcoming election have escalated the gloomy outlook.
Crypto Prices Tumble; Is the “Uptober” Rally Postponed?
October is known for historically bullish cryptocurrency price actions, which has earned it the nickname “Uptober.” However, many investors have lost hope of the historical “Uptober” rally as crypto prices plummeted.
🚨Fidelity sells 611 #Bitcoin
Selltober is here pic.twitter.com/NOTITqlPGt
— Thomas | heyapollo.com (@thomas_fahrer) October 4, 2024
Amid the steady downturn, mentions of “Uptober” across social media platforms have declined, according to Santiment’s recent X post.
🎃 Mentions of “Uptober” have declined significantly, painting a picture that traders have become much more bearish on the idea of this month being an automatic money printer for crypto. The lack of optimism opens the door for (at least) a short-term bounce. 📈 https://t.co/iACWMGPvSs
— Santiment (@santimentfeed) October 3, 2024
Like Thompson, many analysts believe the lack of optimism could facilitate a short-term rebound if investors leverage the buy-the-dip opportunity.
Santiment’s Maksim Balashevich said the waning Uptober excitement due to market dips opens doors for a rebound. However, he noted that it remains uncertain whether the more significant downtrend is over.
Although October is typically bullish, with more than 20% in an average gain over the last 11 years, most rallies are recorded later in the month.
Bitcoin declined 7% in the first half of October last year but surged nearly 30% in two weeks to the end of the month to reach 34,500. This raises hope among investors that a sharp upswing might still occur later this month.
