Home Bitcoin News Hedge Fund Manager Declares Buying Bitcoin Dip a ‘No-Brainer

Hedge Fund Manager Declares Buying Bitcoin Dip a ‘No-Brainer

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Quinn Thompson, chief investment officer at Lekker Capital, has identified the recent 6% dip in Bitcoin’s price since September 30 as a prime moment for investors to increase their holdings. In a post on X on October 3, Thompson declared that purchasing Bitcoin (BTC) at its current price range of around $61,000 is a “no-brainer.”

A New Macro Landscape

Thompson emphasized that the current macro backdrop for Bitcoin differs significantly from previous price drops. He referenced the price action from March 5 of this year, when Bitcoin hit an all-time high of $73,700. By contrasting the recent dip with historical trends, he argued that Bitcoin’s recovery from its technical 200-day moving average—a key indicator for traders—demonstrates a “clear invalidation” of prior bearish patterns.

In past instances, Thompson pointed out, Bitcoin had plummeted below its 200-day moving average, signaling a more dire market condition. However, this time around, BTC has bounced back sharply from this critical level. “I don’t usually give very short-term views, but it seems like a no-brainer to be bidding this area,” he stated, suggesting that prices could swing upward soon.

Market Context: Geopolitical and Economic Pressures

Thompson’s bullish sentiment comes amidst a backdrop of escalating geopolitical tensions in the Middle East. Recent military actions by Iran against Israel have spooked markets, leading to a sell-off in risk assets, including Bitcoin. Furthermore, concerns over the strength of the U.S. economy and uncertainty surrounding the upcoming November elections have contributed to a more cautious investor atmosphere.

In this context, Thompson believes that the current dip represents an attractive entry point for investors looking to capitalize on potential future gains.

The Uptober Phenomenon

Adding to the conversation around Bitcoin’s price movements is the term “Uptober,” a nickname for October, which has historically been a strong month for cryptocurrency price performance. However, mentions of “Uptober” have decreased across social media as markets continue to pull back. Some analysts suggest that this lack of enthusiasm may actually create a favorable environment for a short-term rebound.

Maksim Balashevich, founder of the analytics platform Santiment, noted that while excitement surrounding Uptober has waned, this situation could open the door for a rebound. He cautioned, however, that whether the larger downtrend has truly ended remains uncertain. Historically, October and November are strong months for Bitcoin, with average gains exceeding 20% over the past 11 years. Notably, the majority of these gains tend to materialize later in the month.

A Look Back at October Trends

Last year, Bitcoin experienced a significant drop of 7% to $26,650 in the first half of October. However, it rebounded sharply, surging nearly 30% in just two weeks to close the month at $34,500. This pattern has led many traders to speculate about the possibility of a similar upward move later this month, especially given the historical trends.

Conclusion: A Potential Opportunity

Quinn Thompson’s analysis of the current Bitcoin dip presents a compelling case for investors to consider increasing their exposure to the cryptocurrency. By emphasizing the favorable macro environment and key technical indicators, he positions Bitcoin as an attractive buy at a time when fear and uncertainty prevail in the broader market.

As the month progresses, all eyes will be on Bitcoin to see if it can reclaim its upward momentum, particularly in light of its historical performance in October. For investors willing to take a calculated risk, this dip may just be the opportunity they have been waiting for.

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Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

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