Each drop is a twist, each rise a revelation in the crypto universe. For Quinn Thompson, investment director at Lekker Capital, the recent 6% fall in Bitcoin is not a simple blip, but a strategic opening. While volatility has some shaking, others, like Thompson, see it as a unique opportunity to buy before the next bounce. In this article, we'll explore why this decline might just be the window of opportunity every savvy investor needs.
A drop that defies previous models
At first glance, seeing Bitcoin plunge 6% could discourage newbies. However, Thompson, with his seasoned analyst's flair, detects in this movement a clear break from usual trends.
What he calls a “clear invalidation” of past patterns shows that this correction is not like the others. Bitcoin is currently trading around $61,000, a figure that for some might evoke caution, but for others represents a wide open door to accumulate more BTC.
In his analysisThompson reminds us of a landmark event on March 5, 2023, when Bitcoin hit an all-time high at $73,700. At first glance, the current decline might appear to follow a similar trajectory, but what sets this moment apart is the speed of the observed rebound.
The latter is often a powerful indicator: where other declines stall, this fall seems to be the beginning of a rapid return to higher levels.
Technical indicators, such as the 200-day moving average, support this thesis. Usually, falling below this threshold is a sign of weakness, but here the rapid rebound shows that the momentum may well have changed.
For Thompson, there is no doubt: the current macroeconomic context, in constant evolution, is shaping a new situation for Bitcoin. What if, this time, we were at the dawn of a historic turning point?
A global context that works in favor of Bitcoin
Beyond simple charts and technical trends, the Bitcoin market also reacts to global events. Geopolitical tensions, particularly in the Middle East, have caused a wave of uncertainty in traditional markets.
As Iran escalates its military actions against Israel, investors are nervous and risky assets, like Bitcoin, have temporarily faltered. However, this volatility should not be interpreted as weakness, but rather as an opportunity for those who know how to read between the lines.
Geopolitical crises, as disastrous as they are on a human level, often have a paradoxical effect on markets.
Safe-haven assets, such as gold, are soaring, but bitcoin, as an emerging store of value, may well follow this trend as the crisis deepens.
Concerns over the U.S. economy and political stability ahead of the election add another layer to this complexity.
Many investors are beginning to question the strength of traditional assets, and this could well work in favor of Bitcoin, seen by some as a hedge against inflation and economic turmoil.
Maksim Balashevich, founder of Santiment, shares a similar vision to Thompson. He observes that mentions of “Uptober” — a nickname given to the month of October for its historic rises in the field of cryptocurrencies — have dropped on social networks.
This could mean that investor enthusiasm is waning, a perfect condition for an unexpected rebound. As the saying goes, it's when everyone gives up that it's often time to buy back. Some hope to see a supercycle for the price of bitcoin.
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