Bitcoin's 6% dip since September 30 is a no-brainer buy, according to Lekker Capital’s CIO. He believes the current price levels offer an ideal entry point, with the potential for a major rebound this month.

Bitcoin Dip a No-Brainer Buy, Lekker Capital’s CIO Claims

Investors should view Bitcoin's 6% decline since September 30 as a chance to pile more BTC, says Quinn Thompson, chief investment officer at Lekker Capital.

X posted by Thompson on October 3, stated that, compared to previous price dips, the "macro backdrop" of Bitcoin's price action has changed substantially, making it a no-brainer to purchase the cryptocurrency at its current range of $61,000.

Technical Indicators Suggest Bitcoin Rebound

According to Cointelegraph, Thompson included a price chart of Bitcoin starting from March 5 of this year, when the cryptocurrency hit a new all-time high of $73,700.

Traders use the 200-day moving average, a crucial technical indicator, to assess the mid-term strength of specific assets. Thompson pointed out three prior similar setups in which Bitcoin's price fell and fell far below it.

Nevertheless, Bitcoin's price action this time around was rather different, with a rapid rebound off the technical level. This, according to Thompson, indicated a clear invalidation on the back of a 180-degree shift in the macro backdrop, suggesting that prices might soon be heading higher.

Geopolitical Tensions Weigh on Bitcoin Price

Markets were rattled earlier this week by rising Middle Eastern geopolitical tensions, which caused risk assets like Bitcoin to plummet in value as Iran threatened to launch a military strike against Israel.

Uncertainty over the US presidential election in November and mounting worries about the health of the US economy have both contributed to a decline in risk asset prices.

October’s Uptober Optimism Fades

As markets continue to retreat, mentions of "Uptober"—a moniker given to October for its traditionally optimistic crypto price action—have dropped throughout social media.

Other experts agree with Thompson that the current pessimism creates a window of opportunity for a temporary rebound.

“Uptober excitement wanes as the market dips, which does open the door for a rebound. Whether the bigger downtrend is over remains to be seen,” stated Maksim Balashevich, founder of Santiment.

History Points to a Potential Rally Later in the Month

The majority of the gains occur later in the month. However, October has traditionally been a good month for returns, with an average gain of over 20% in the last 11 years.

Some investors are considering the prospect of a steep increase in Bitcoin's value later this month after the price dropped 7% to $26,650 in the first half of the month and then rose 30% in two weeks to conclude the month at $34,500.