My contact information is on my personal page. If you have any questions, comments for the article, or need investment support or want to join the signal group, please contact me.
Bitcoin's 6% drop since September 30 should be seen as an opportunity for investors to accumulate more BTC, according to Quinn Thompson, Chief Investment Officer at Lekker Capital.
In an October 3 X post, Thompson argued that buying Bitcoin at its current price of around $61,000 is “obvious,” emphasizing that the “macro context” of the cryptocurrency’s price action has changed significantly compared to previous price drops.
He attached a chart of Bitcoin's price action from March 5 of this year, when BTC hit a new record high of $73,700.
Thompson highlighted three previous “similar setups,” where Bitcoin’s price plummeted and then fell below its 200-day moving average — a key technical indicator that traders use to gauge the medium-term strength of certain assets.
This time, BTC bounced strongly from this technical level, showing “clear rejection based on a 180-degree change in the macro landscape,” suggesting that prices could soon rebound.
“I don't usually take short-term views, but it seems obvious to buy into this area.”
Rising geopolitical tensions in the Middle East have rocked markets this week, with risk assets like Bitcoin selling off sharply as Iran took military action against Israel.
Concerns about the strength of the US economy and uncertainty surrounding the outcome of the US election in November also weighed on risk assets.
Meanwhile, mentions of “Uptober” – the nickname for October given the cryptocurrency’s historically strong bullish price action – have plummeted on social media as the market continues to correct.
Sharing Thompson's view, other analysts also see the recent lack of optimism as an opportunity for a short-term rally.
“The Uptober excitement is fading as the market corrects, opening the door for a recovery. Whether the larger downtrend is over remains to be seen,” said Santiment founder Maksim Balashevich.
While October has historically been a profitable month – with an average gain of over 20% over the past 11 years – most of the gains have occurred towards the end of the month.
October and November are typically the best months for Bitcoin price performance.
In the first half of October 2023, Bitcoin fell 7% to $26,650 but then rallied nearly 30% in two weeks to end the month at $34,500, leading some traders to consider the possibility of a sharp increase later this month.
