Despite the nice revival of the Bitcoin (BTC) price Right now, not everyone is optimistic. Shortly after the crash, Markus Thielen, head of research at 10x Research, predicted that Bitcoin could fall to $40,000.
According to Thielen, Bitcoin investors should wait until the price drops to the low $40,000 range to get the best entry price.
Will the price of Bitcoin fall?
“I expect the price of Bitcoin to fall to the low levels of $40,000, after which we expect another big increase in prices,” Thielen said in the August 7 report.
The last time Bitcoin was around these price levels was February 6th. At the time of writing, Bitcoin is trading at around $57,000, which is around 16 percent higher than the low of $49,000 recorded on Monday.
The strong bounce is cause for optimism, but Thielen isn’t the only one who thinks lower prices are possible. Other analysts also believe that Bitcoin could fall into the $40,000s in the coming months. Timothy Peterson, founder of Cane Island Alternative Advisors, wrote in an X post on August 5: “$40k and $80ka are equally likely in the next 60 days.”
David Gokhstein, founder of Gokhstein Media, also shares Thielen’s view that lower prices would benefit long-term holders. “I would like to see Bitcoin drop to $50K, or even $40K. That would be a good opportunity to buy more.”
Thielen recommends stop loss
Thielen advises investors to wait and see for now. He currently does not think that it is a logical choice to buy Bitcoin, because according to him Bitcoin has a lower risk reward ratio than, for example, shares.
“Both Bitcoin and Ethereum are not showing the sustained, high gains that investors in the US stock market have been enjoying with little effort,” Thielen said.
For investors who think the current price is an interesting entry level, Thielen recommends using a stop-loss. He sees $54,000 as an important level. If Bitcoin falls below this level, it is expecting an aggressive correction below $50,000.
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2024-08-07 13:31:57
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