Crypto News Today- For Bitcoin, the ‘low $40,000s’ is the sweet spot for entering the bull market effectively
Crypto News Today- A crypto market analyst suggests that Bitcoin investors should hold off on buying until the asset’s price falls to the low $40,000s for the best entry point ahead of the next bull run.
Markus Thielen, head of Research at 10x Research, stated in a report on August 7 that to ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low $40,000s. He further explained that this could set the stage for a significant rally.
The last time Bitcoin was in this range was on February 6, when it traded at $42,577, according to CoinMarketCap data.
As of now, Bitcoin is priced at $56,848, down 12.89% since July 31. Thielen’s view aligns with other analysts who also predict that Bitcoin might dip into the $40,000s in the coming months.
Timothy Peterson, founder of Cane Island Alternative Advisors, mentioned in an August 5 post on X (formerly Twitter), $40k and $80k are equally likely in the next 60 days.
Crypto analyst Crypto Rover told his 808,400 followers on X, If Bitcoin breaks this support, $40k is next.
David Gokhstein, founder of Gokhstein Media, added, I’d love to see Bitcoin drop to $50K, or even $40K. That would be a perfect opportunity to scoop up some more.
Thielen Doubts the Safety of Holding Bitcoin
Markus Thielen is cautious about holding Bitcoin, given its recent performance. Although $60,000 had been a reliable support level for Bitcoin since March, it has now fallen below that mark for two straight days.
Thielen advises against a buy-and-hold strategy amid expected near-term volatility. He points out that neither Bitcoin nor Ethereum currently offers the high risk-reward ratio seen recently in U.S. stock markets.
Neither Bitcoin nor Ethereum is demonstrating the steady, high Sharpe ratio uptrends that U.S. stock market investors have enjoyed with minimal effort, Thielen said. Despite this, he sees Bitcoin’s current price as potentially advantageous but recommends setting a stop loss at $54,000 due to ongoing downside risk.
Thielen also notes that there have been three consecutive days of outflows from ETFs, which don’t seem to be buying the dip.
Investors in U.S.-based spot Bitcoin ETFs, launched on January 11, are now underwater, as their average purchase price is around $60,000.
Given Bitcoin’s current downtrend, retail investors, who often follow trends, may be reluctant to make substantial buy-the-dip ETF investments, Thielen added.
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