Bitcoin’s 6% decline since September 30 should be viewed as an opportunity for investors to acquire more BTC, according to Quinn Thompson, the chief investment officer at Lekker Capital.
Thompson expressed on October 3 that buying Bitcoin at the current price range of $61,000 is a smart move, noting a significant change in the “macro backdrop” of price action for the crypto asset compared to previous declines.
He presented a chart showing Bitcoin’s price action from March 5 this year when BTC hit a new all-time high of $73,700.
Thompson pointed out three previous instances where Bitcoin’s price dropped below its 200-day moving average, but this time BTC bounced back sharply, indicating a potential rapid price increase.
Geopolitical tensions in the Middle East led to market jitters earlier in the week, causing risk assets like Bitcoin to drop as Iran engaged in military actions against Israel.
Concerns about the US economy and uncertainty around the upcoming US elections in November have also weighed on risky assets.
Analysts note the lack of recent optimism in the market as an opportunity for a near-term recovery, with potential for a turnaround in the larger downward trend.
Historically, October has been a strong month for Bitcoin returns, with an average gain of over 20% in the last eleven years, particularly towards the end of the month.
In the first half of October 2023, Bitcoin experienced a 7% decline to $26,650 but then surged by almost 30% in two weeks to close the month at $34,500, leading traders to consider the possibility of a sharp rise later in the month.
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