bullish

Bitcoin

Hedge

Bitcoin’s 6% drop since Sept. 30 should be seen as an opportunity for investors to stack more BTC, says Quinn Thompson, the chief investment officer at Lekker Capital.&nbsp;
In an Oct. 3 <a data-ct-non-breakable="null" href="https://x.com/qthomp/status/1841666810791198787" rel="null" target="null" text="null" title="null">post</a> on X, Thompson said buying Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) in its current price range of $61,000 is a “no-brainer,” adding that the “macro backdrop” of price action for the crypto asset has changed significantly compared with past price drops.&nbsp;
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 <img alt="Bitcoin Price" src="https://s3.cointelegraph.com/uploads/2024-10/019255f9-d0d7-7cc3-86fa-ff981d45ff90" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/qthomp/status/1841666810791198787" rel="null" target="null" text="null" title="null">Quinn Thompson</a>
 </figcaption>
</figure>
He attached a chart of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-3-year-chart-pattern-breakout-analyst-roi" rel="null" target="null" text="null" title="null">Bitcoin’s price action</a> from March 5 this year, when&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-sets-new-record-high-69k" rel="null" target="null" text="null" title="null">BTC notched a new all-time high</a>&nbsp;of $73,700.&nbsp;
Thompson highlighted three previous “similar setups” in which the price of Bitcoin plummeted and subsequently tumbled well below its&nbsp;<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-trading-momentum-strategies-with-different-moving-averages" rel="null" target="null" text="null" title="null">200-day moving average</a> — a key <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/crypto-charts-101-how-to-read-cryptocurrency-chartshttps://cointelegraph.com/learn/crypto-charts-101-how-to-read-cryptocurrency-charts" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/learn/crypto-charts-101-how-to-read-cryptocurrency-chartshttps://cointelegraph.com/learn/crypto-charts-101-how-to-read-cryptocurrency-charts">technical indicator used</a> by traders to gauge the mid-term strength of certain assets.&nbsp;
This time, however, BTC bounced sharply off the technical level, which Thompson said showed a “clear invalidation on the back of a 180-degree shift in the macro backdrop,” hinting that prices may soon swing upward.&nbsp;
<blockquote>
 “I don't usually give very short-term views, but seems like a no-brainer to be bidding this area.”
</blockquote>
Escalating geopolitical tensions in the Middle East spooked markets earlier this week, with risk assets like Bitcoin selling off sharply as Iran took military action against Israel.&nbsp;
Growing concerns over the strength of the US economy and uncertainty around the outcome of the US election in November have also weighed on risk assets.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/geopolitical-tensions-us-elections-bitcoin-debasement-trade-jpmorgan" rel="null" target="null" text="null" title="null">Geopolitical tensions, US elections favor Bitcoin ‘debasement trade’: JPMorgan</a>
Meanwhile, mentions of Uptober” — a nickname given to October for its historically bullish crypto price action — have <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/uptober-mentions-plummet-traders-turn-bearish-crypto" rel="null" target="null" text="null" title="null">plummeted across social media</a> as markets continue to pull back.&nbsp;
In line with Thompson, other analysts also say the lack of recent optimism presents an opportunity for a short-term bounce.&nbsp;
“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,” <a data-ct-non-breakable="null" href="https://x.com/santimentfeed/status/1841985637525733712" rel="null" target="null" text="null" title="null">said</a> Santiment founder Maksim Balashevich.
While October has <a data-ct-non-breakable="null" href="https://www.coinglass.com/today" rel="null" target="null" text="null" title="null">historically</a> been a strong month for returns — with an average gain of over 20% in the last 11 years — most of the gains happen later in the month.&nbsp;
<figure>
 <img alt="Bitcoin Price" src="https://s3.cointelegraph.com/uploads/2024-10/019255fb-891e-7cc9-8dc5-049b9f9d3285" title="">
 <figcaption style="text-align: center;">
 October and November are typically the best months for Bitcoin price performance. Source: CoinGlass
 </figcaption>
</figure>
In the first half of October 2023, Bitcoin fell 7% to $26,650 but <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/new-all-time-high-uptober-5-things-bitcoin-this-week" rel="null" target="null" text="null" title="null">surged almost 30%</a> in two weeks to close the month at $34,500, leading some traders to entertain the possibility of a sharp move upward later this month.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/anti-aging-multi-millionaire-bryan-johnson-almost-devoted-life-crypto/" rel="null" target="null" text="null" title="null">Anti-aging tycoon Bryan Johnson almost devoted his life to crypto</a>

Buying this Bitcoin dip is a ‘no-brainer’ — Hedge fund manager

Cointelegraph

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