Bitcoin price is down, but hedge fund managers like Quinn Thompson believe it’s a clear buying opportunity. Thompson, Chief Investment Officer at Lekker Capital, sees the 6% dip since the end of September as a “no-brainer” buy. He points out that the macroeconomic backdrop has shifted significantly compared to previous drops. Bitcoin’s drop to around $61,000 may look like a bearish move, but Thompson says it’s a setup for future gains. Many believe that despite the current downturn, October still has the potential to turn bullish for BTC.
Bitcoin Bulls Watch for a Rebound
October has historically been a bullish month for Bitcoin, often seeing gains over 20%. However, the start of October 2023 has been rough, with BTC dropping from $66,000 to under $60,000. Despite this, traders are optimistic about a possible recovery later in the month. As the market cools off, some believe it sets the stage for a bigger bounce. Hedge fund managers and independent analysts suggest the liquidation and dip we are seeing now could be a setup for a rally as October progresses. Historically, the last two weeks of October have been strong for BTC.
Liquidations Could Drive Further Drops for BTC
Even though October is expected to be bullish, BTC could still see more drops in the short term. Liquidation levels and resistance indicators show that Bitcoin might fall to $54,000 before bouncing back. This level coincides with the CME gap left from earlier in the month and is a crucial support area. If Bitcoin does drop further, it could shake some bullish confidence. But for those willing to weather the volatility, these lower prices are seen as a chance to accumulate more BTC.
Volatility is Expected to Continue in October
October could be more volatile than usual. Analysts point to a kink in Bitcoin’s implied volatility curve, suggesting bigger price swings are on the way. The uncertainty is fueled by geopolitical tensions in the Middle East and the upcoming U.S. payroll data, both of which are affecting risk assets. Traders expect Bitcoin to move sharply over the next few days as traditional markets react to these global events. While volatility can scare off some investors, it also presents opportunities for those willing to take the risk.
If we don’t hold this, the next levels i’m seeing are $57.4k (sweep) & Q2 lows.
If we do hold this, especially in the geo-political conditions that we’re in, the current dip can be seen as an extreme strength test that we passed, and in that case i think we’ll see 70k soon.
— Dentoshi (@Dentoshi) October 3, 2024
Is Bitcoin at the Bottom or More Downside to Come?
The big question on everyone’s mind is whether Bitcoin has reached its bottom. Some traders are eyeing the $54,000 support zone as the lowest BTC might go before rebounding. This level lines up with the CME gap, and many see it as the last major point of support before the bullish trend might be broken. However, as long as Bitcoin stays above this level, bulls are confident it will recover. For now, the market remains uncertain, but many are hopeful for a bullish swing later in October.
In conclusion, Bitcoin is going through a rocky phase, but seasoned investors see this as an opportunity rather than a cause for concern. Volatility and liquidation may drive prices lower in the short term, but the broader outlook for BTC remains hopeful as we move deeper into October.
