Bitcoin Price Prediction: Could $40,000 Be the Best Time to Buy Bitcoin? Experts Say Yes!
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Bitcoin (BTC) has recently fallen below the $50,000 mark, driven by the Bank of Japan’s interest rate increase and a sharp drop in the Japanese stock market—the largest since 1987. Markus Thielen, CEO of 10X Research, believes buying Bitcoin now could be risky. However, other analysts see signs of a potential recovery. Thielen still thinks $40,000 is the best target for buying Bitcoin before the next major bull run.
Here’s what he has to say.
Timing Is Everything: Thielen’s AdviceMarkus Thielen, Head of Research at 10x Research, emphasizes the importance of timing for maximizing returns. According to Thielen, Bitcoin prices need to fall into the low $40,000s to set the stage for the next substantial rally. The last instance Bitcoin traded within this range was in early February, at $42,577. Currently, Bitcoin stands at $56,848, marking a 12.89% decline since the end of July.
Thielen points out that this drop is different from those in April and June, which were caused by increased leverage. This time, with trading slowing in August and September and many institutional investors on vacation, major capital investment is unlikely. He advises caution and suggests waiting for better opportunities after this slow period ends.
Well.. Should You “Buy the Dip”?
Thielen’s views are shared by others.
I’d love to see Bitcoin drop to $50K, or even $40K. That would be a perfect opportunity to scoop up some more.
— David Gokhshtein (@davidgokhshtein) August 1, 2024Timothy Peterson, founder of Cane Island Alternative Advisors, sees a 50/50 chance of Bitcoin hitting either $40,000 or $80,000 in the coming months. Similarly, Crypto Rover and Gokhstein Media founder David Gokhstein see a drop to $40,000-$50,000 as a good buying opportunity.
If #Bitcoin breaks this support, $40k is next. pic.twitter.com/nIsdTmr3rS
— Crypto Rover (@rovercrc) August 5, 2024 How to Navigate the Current Crypto MarketThielen warns against a simple buy-and-hold approach right now. He notes that Bitcoin and Ether are not offering the high risk-reward ratios seen in US stock markets. Instead, he recommends setting a stop loss at $54,000 to manage risks, especially after a recent three-day outflow from Bitcoin ETFs.
Even with $17 billion invested in spot Bitcoin ETFs since January, Bitcoin’s price has dropped below $50,000. This decline raises concerns about retail investors’ reluctance to buy during the dip, despite significant inflows. Thielen notes that ETF investors, who bought in at around $60,000, are currently “underwater.”
Strategic Buying is the KeyThielen sees the current price as a potential buying opportunity but emphasizes the need for smart risk management due to market volatility. Investors should stay alert and wait for better entry points to maximize their gains. As Bitcoin continues its downturn, careful planning and timing will be crucial for capitalizing on the next bull market.
The crypto world is known for its volatility. Are you prepared to weather the storm?