Does the Current Bitcoin Price Present a Buy Opportunity?
According to Quinn Thompson, chief investment officer at Lekker Capital, the recent Bitcoin price drop of 6% since Sept. 30 is a key opportunity for investors to buy more. Thompson explained that BTC’s current price of $61,000 is a “no-brainer” buy level.
Thompson compared the latest Bitcoin buy opportunity with the previous ones. He highlighted that in the previous ones, BTC’s price fell sharply below its 200-day moving average (a critical technical indicator for assessing the mid-term momentum of assets) and bounced back slowly.
However, in this instance, BTC bounced back sharply, a signal that there had been a “clear invalidation” of the usual patterns. According to Thompson, the new price action suggests a 180-degree shift, leading to his confident assessment that Bitcoin is set for a potential upward movement.
While Thompson is typically reluctant to give short-term market predictions, he stated that this particular situation was too clear to ignore, reaffirming his stance that investors should take advantage of the current price levels.
Is a Bitcoin Price Rebound Imminent?
The market’s reaction to escalating geopolitical tensions has created additional volatility. Heightened conflict in the Middle East has triggered widespread sell-offs in risk assets, including Bitcoin.
Rising concerns over the US economy and uncertainties surrounding the upcoming US elections have also contributed to an overall market pullback. Nevertheless, Thompson remains optimistic that the current market environment presents a unique window for BTC purchases.
His views align with those of other analysts who also see the dip as a potential opportunity for a short-term price bounce. Maksim Balashevich, founder of analytics firm Santiment, noted that excitement around “Uptober,” a term used to describe October’s historically positive impact on cryptocurrency prices, had faded due to the market downturn.
However, he predicted that the decreased enthusiasm could pave the way for a possible rebound later in the month.
Historical Trends Suggests Imminent Price Rally
CoinGlass data showed that Bitcoin typically delivers good returns in October and November, with an average gain of over 20% in the past 11 years. Hence, traders are pointing to the potential for a sharp rally before the end of the month.
It’s worth noting that in the first half of October 2023, BTC dropped by 7% to $26,650 but later recovered nearly 30% to finish the month at $34,500. This pattern has led some to believe that a similar upward move could happen in the coming weeks.
Bitcoin Demand Grows Among US Investors
Bitcoin’s price may be headed for a short-term boost as demand from US investors continues to grow, according to CryptoQuant’s recent analysis. Despite a recent pullback in BTC’s value, the on-chain analytics platform points to strong indicators of renewed buying pressure, especially from Coinbase, one of the largest US-based exchanges.
CryptoQuant analyst Yonsei_dent explained that when the Coinbase premium shows higher prices on Coinbase, it signals stronger demand from the US market. Recently, this premium has been moving positively, suggesting that American investors remain confident in Bitcoin’s potential for gains, regardless of uncertain market conditions.
Golden Cross Points to A Potential Price Surge
In recent days, the premium noted a golden cross event, where the short-term moving average crosses above the long-term moving average. According to Yonsei_dent, this pattern has often led to substantial price movements in Bitcoin’s favor.
The last time this happened, BTC surged past $66,000. While the price of Bitcoin hovered around $61,000 at the time of writing, Yonsei_dent believes the current US demand could exert upward pressure on the crypto’s price in the coming days.
Like Coinbase, other exchanges have also recorded strong inflows and analysts like Axel Adler Jr. have pointed out that US investors are the primary drivers of this movement. Adler referenced CryptoQuant’s Coinbase Flow Pulse tool to back his claims, which measures the flow of Bitcoin into Coinbase from other exchanges.
According to him, Bitcoin’s inflows into Coinbase remain strong, indicating sustained interest from the US. Moreover, Bitcoin withdrawals from exchanges are also on the rise, nearing levels last seen during the FTX crash in November 2022.
This trend suggests that many investors are anticipating further price increases or using the coin as a hedge against potential market instability.
