Bitcoin’s 6% decline since September 30 is being viewed as a prime opportunity for investors to acquire more BTC, according to Quinn Thompson, the chief investment officer at Lekker Capital.
In an Oct. 3 post on X, Thompson stated that purchasing Bitcoin within its current price range of $61,000 is a “no-brainer.” He emphasized that the “macro backdrop” affecting the crypto asset has significantly changed compared to previous price drops.
Thompson shared a chart illustrating Bitcoin’s price action from March 5 of this year, when BTC reached a new all-time high of $73,700.
He pointed out three previous instances where Bitcoin’s price plummeted, subsequently falling below its 200-day moving average—a key technical indicator that traders use to assess the mid-term strength of assets.
However, this time, BTC bounced back sharply from the technical level, which Thompson attributed to a “clear invalidation on the back of a 180-degree shift in the macro backdrop,” suggesting that prices may soon rise.
“I don’t usually give very short-term views, but seems like a no-brainer to be bidding this area,” he noted.
The recent escalation of geopolitical tensions in the Middle East has rattled markets, causing risk assets like Bitcoin to sell off sharply following Iran’s military actions against Israel.
Concerns about the U.S. economy’s strength and uncertainty surrounding the outcome of the upcoming U.S. election have also put pressure on risk assets.
Despite this, mentions of “Uptober”—a term used to describe October’s historically bullish price action—have dropped significantly on social media as markets continue to retreat.
Echoing Thompson’s sentiment, other analysts believe that the current lack of optimism may present an opportunity for a short-term bounce.
“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,” commented Santiment founder Maksim Balashevich.
Historically, October has been a strong month for returns, averaging over 20% gains in the last 11 years, with most of the gains occurring later in the month.
In early October 2023, Bitcoin fell 7% to $26,650 but surged nearly 30% in two weeks, closing the month at $34,500, leading traders to speculate about a sharp upward movement later this month.
