Accumulating BTC Now Is a No-Brainer, Thompson Says

Bitcoin currently trades around $61,300 as market fears remain amid rising tension in the Middle East. In an X post, Quinn Thompson of Lekker Capital says one shouldn't think twice before buying Bitcoin at the current price.

Bitcoin price slipped below the crucial 200-day moving average (MA) on Monday, sparking fear among investors and triggering a sell-off. However, one investment chief says this dip is a “no-brainer” for buying more BTC.

What Happened: Bitcoin price dropped below the 200-day MA on three previous occasions in 2024. Each time, the apex cryptocurrency went on to rally.

Now, Bitcoin price has bounced off the 200-day MA, which is a 180-degree shift in its macro backdrop from the previous price movements.

“I don’t usually give very short-term views, but it seems like a no-brainer to be bidding this area with the clear invalidation of a 180-degree shift in the macro backdrop from the relative to the three previous similar setups,” said Quinn Thompson, chief investment officer at Lekker Capital, in an X post.

Thompson attached a chart showing Bitcoin price action since March, when it went on to hit its new all-time high of $73,750.

“Relative to the three previous times BTC dropped below the 200-day MA (March, May and August), this time is different. The bounces off the 200-day MA in March and May led to an extension of the downtrend from the previous all-time high, while the bounce in August led to a new all-time high,” the investment expert said.

The chart showed Bitcoin price rallying each time after bouncing off the 200-day MA.

“This time around, Bitcoin price bounced off the 200-day MA and went to print a lower high. This suggests that the macro backdrop shifted and we could see a strong upside soon.”

Thompson’s analysis suggests that now could be a good time to buy more Bitcoin ahead of an impending price increase.

While buying BTC may seem like a no-brainer, given the optimistic analysis, it’s important to note that rising tension between Israel and neighboring Middle East countries continues to rattle the markets.

Bearish investor sentiment triggered massive sell-offs in risk assets, including Bitcoin.

Weakening U.S. economic data and uncertainty surrounding the upcoming presidential election created a gloomy outlook.

Crypto Prices Plummeted: Is ‘Uptober’ Rally Postponed?

October is known for strong historical bullish cryptocurrency price actions, earning it the nickname “Uptober.”

However, many investors may have lost hope in the historical “Uptober” rally as crypto prices took a downturn.

Amid the steady decline in crypto prices, mentions of “Uptober” across social media platforms also declined, according to a recent X post by Santiment.

“Mentions of "Uptober" have declined significantly, painting a picture that traders have become much more bearish on the idea of this month being an automatic money printer for crypto. The lack of optimism opens the door for (at least) a short-term bounce. ”

Many analysts, like Thompson, believe the lack of optimism could lead to a short-term bounce if investors took the opportunity to buy the dip.

“The lack of excitement for Uptober due to market dips opens doors for a short-term bounce, but it’s unclear whether the larger downtrend is over,” said Maksim Balashevich of Santiment.

Although October is typically bullish with an average gain of over 20% over the last 11 years, most rallies were recorded later in the month.

Bitcoin price declined ۷% in the first half of October last year but went on to rally nearly 30% in two weeks to reach $34,500 by the end of the month.

This raises hope among investors that a sharp upswing could still occur later this month.

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