Quinn Thompson, chief investment officer at Lekker Capital, has pointed out that Bitcoin’s weekly drop is a buying opportunity. Bitcoin’s 6% weekly drop to $61,000 signals a buying opportunity, says Lekker Capital CIO Quinn Thompson
Bitcoin (BTC) has experienced a 6% drop over the past week, dipping to $61,000. However, according to Quinn Thompson, Chief Investment Officer at Lekker Capital, this presents a buying opportunity due to broader economic shifts.
As reported by Bena Ilyas and Julia Sakovich in *Coinspeaker*, Thompson believes that the current dip is temporary and highlights significant potential for recovery.
Thompson’s analysis and the 200-day moving average
On October 3, Thompson shared his insights on X (formerly Twitter), including a chart that tracks Bitcoin’s price movements since March 5, 2024, when BTC peaked at $73,700. The chart highlights Bitcoin’s volatility and its recent downtrend.
Thompson compared this pattern to previous market cycles, where Bitcoin fell below its 200-day moving average — a key indicator for mid-term strength. Each time, Bitcoin managed to recover swiftly, which Thompson views as an indication of a broader economic shift that could lead to another price surge.
Geopolitical tensions driving Bitcoin sell-off
Thompson’s optimism comes despite ongoing market turbulence.
He pointed to geopolitical tensions in the Middle East, particularly Iran’s military actions against Israel, which have shaken global markets. These tensions, combined with broader economic concerns, have led to a sell-off of risk assets, including Bitcoin.
Market volatility has also been driven by uncertainty surrounding the U.S. economy and the upcoming November elections.
These factors have dampened investor confidence, weakening the excitement around “Uptober” — a term used to describe the historically positive performance of October in the crypto space.
As markets continue to pull back, mentions of “Uptober” on social media have noticeably faded.
Analysts predict potential recovery despite uncertainty
Thompson’s view aligns with other analysts like Maksim Balashevich of *Santiment*, who observed that while market optimism is waning, this could signal a short-term recovery.
However, Balashevich also warned that it remains unclear whether the broader bearish trend has truly ended, reflecting the mixed sentiments within the investor community about Bitcoin’s future trajectory.
Historical October performance hints at recovery
Historically, October has been a strong month for cryptocurrencies, with an average gain of over 20% in the last 11 years, according to *CoinGlass*. Most of these gains typically occur in the latter half of the month.
In October 2023, Bitcoin dropped 7% to $26,650 early in the month but surged nearly 30% in two weeks, closing at $34,500. Traders are now watching closely for a similar pattern this year.
As the cryptocurrency market continues to evolve, global events, economic signals, and technical analysis will shape trading strategies. The coming weeks will be crucial in determining whether Bitcoin will repeat its historical October surge or follow a new path in this ever-changing financial landscape.
Current technical indicators
As of midday Friday, Bitcoin is trading in the green at $61,339.
The 70-period moving average is hovering over the last four candles, while the RSI is trending upwards at 48 points. The MACD lines are above zero, signaling potential bullish momentum. Medium-term resistance sits at $69,985, though some indicators remain mixed.
Conclusion
Despite recent price drops and market volatility, Quinn Thompson and other analysts see potential for a recovery, driven by broader economic factors and Bitcoin’s historical October performance.
If trends hold, Bitcoin may soon reverse its recent losses and push towards new highs in the coming weeks.