The recent Bitcoin price drop is a "no-brainer" opportunity for investors to accumulate more BTC according to Quinn Thompson.
Thompson believes that Bitcoin's current price movement is different from previous dips due to solid macroeconomic factors.
The escalating Iran-Israel conflict and concerns about the U.S. economy have dampened investor sentiment.
Despite this, Bitcoin's historical performance in October indicates a possible rebound.
Polymarket bettors currently believe Bitcoin is unlikely to hit $70,000 this month.
Bitcoin's price has recently taken a massive dip.
However according to experts, this downturn could be a prime buying opportunity. Lekker Capital’s chief investment officer Quinn Thompson has made it clear that this drop isn’t just a temporary stumble.
Instead he believes it's a chance for investors to accumulate more BTC.
In a 3 October post on X (formerly Twitter), Thompson emphasized that the current Bitcoin price of around $61,000 represents a "no-brainer" buy opportunity.
This is especially true considering the broader economic picture.
Let’s see what he means.
Since the start of October, Bitcoin has dropped by about 6%. This has caused widespread panic among many market participants.
Interestingly Thompson believes that this is no ordinary price dip.
He maintains that the way Bitcoin currently moves is different from that of previous dips.
This time around the cryptocurrency has solid macroeconomics that is pointing toward an upward swing soon.
The Lekker Capital CIO referred to three past instances when Bitcoin’s price fell below its 200-day moving average.
Bitcoin’s previous dips
The recent breakdown is different however, because Bitcoin bounced back sharply from that level.
He interprets this signal as a sign that momentum is growing and now urges investors to take advantage of this situation.
Bitcoin’s recent selloff was no mere occurrence.
The ongoing decline is mostly due to the escalating conflict between Iran and Israel which spooked the markets.
Historically risk assets like Bitcoin are usually extra volatile during times like these.
This happens because investors often flock to traditional safe havens like oil and gold during times of uncertainty.
This is also interesting considering how oil prices saw their biggest one-day surge in nearly a year just as the the Middle East tensions resurfaced.
Oil price skyrockets
Beyond the geopolitical issues with Iran and Israel, there have also been concerns about the U.S. economy and the upcoming presidential election.
All of these factors combined have weighed the market down. They have so far dampened investor sentiment and put additional pressure on Bitcoin’s price.
October has historically been a strong month for Bitcoin. This has earned it the nickname "Uptober".
According to data from Coinglass, Bitcoin has typically gained over 20% in Octobers for the last 11 years.
This time around, Bitcoin has started October 2024 with an ongoing 3% dump.
Bitcoin monthly returns
Moreover Santiment also mentioned in a recent tweet that social media mentions of “Uptober” have dropped in recent days.
The analytics platform’s founder also noted that this dip in optimism could be a positive signal for a short-term price rebound.
He pointed out that even though the start of the month is bearish, historical data shows that October pumps tend to happen in the latter parts of the month.
For example Bitcoin initially dropped 7% in the first half of the month last year in October.
However, it then surged by almost 30% in the final two weeks.
Looking at Bitcoin’s historical performance, October has only ended in the red twice since 2013.
This makes it one of the best months for investor returns.
Between 2013 and 2024, Bitcoin has seen gains of up to 60% in a single month with an average return of 22%.
Despite the current dip, data from CoinGlass indicates that Bitcoin's price is still following a familiar pattern:
The first week is usually bearish but the second and third weeks often bring gains.
The sentiment on betting platforms like Polymarket is mixed though.
For example, most bettors agree that Bitcoin is unlikely to hit $70,000 this month. On the flip side, they are more confident that the cryptocurrency will remain range-bound between $57,500 and $65,000.
This leaves the door open for a possible bounce later in the month.
Bitcoin’s price in October
While all of the above point to a possible rebound, Bitcoin continues to decline.
Oil and gold on the other hand, are rising steadily with Brent oil seeing an 8% increase in early October.
Despite the current bearish crypto sentiment, there are reasons to be optimistic.
Quinn Thompson’s analysis combined with historical data, shows that the current dip may be a prime buying opportunity.
As the geopolitical tensions and macroeconomic factors continue to rage on, Bitcoin's long-term trends indicate positivity.
To be on the safer side, it might be helpful to expect the real “Uptober” anytime from 15 October.
For investors looking to take the risk (with proper DCA strategy), there might be a few pointers in the "no-brainer" buying opportunity that Thompson describes.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.