According to a crypto market analyst, Bitcoin investors should wait on the sidelines until the asset’s price drops below $40,000 to get the best entry price before the next bull run. Markus Thielen, Head of Research at 10x Research, stated in a report dated August 7 that they aim for Bitcoin’s price to fall below $40,000 to ideally time the next bull market entry.
Notable Statements from Analysts
According to CoinMarketCap data, the last time Bitcoin was in this range was February 6, when it was trading at $42,577. At the time of writing, Bitcoin had fallen 12.89% since July 31, valued at $56,848.
Thielen is not alone, and other analysts also believe Bitcoin could drop to $40,000 in the next few months. Timothy Peterson, founder of Cane Island Alternative Advisors, shared the following in an August 5 X post:
“In the next 60 days, $40,000 and $80,000 are equally likely.”
Crypto Rover told his 808,400 X followers that if Bitcoin breaks this support, $40,000 is next and shared a related chart.
David Gokhstein, founder of Gokhstein Media, stated that he very much wants Bitcoin to drop to $50,000 or even $40,000, adding that this could be a perfect opportunity to gain a bit more.
Details on the Subject
$60,000 has been a solid support level for Bitcoin since March, but it has now fallen below this threshold for two consecutive days. Due to the expected short-term volatility, Thielen advised against a buy-and-hold strategy, noting that Bitcoin and Ethereum currently do not offer the same high risk-reward ratio recently seen in the US stock markets:
“Neither Bitcoin nor Ethereum exhibit the stable high Sharpe ratio uptrends that US stock market investors have achieved with minimal effort.”
Thielen believes Bitcoin’s current price could still present a buying opportunity but suggests placing a stop-loss order at $54,000 due to the continued downside risk:
“Especially since we have seen three consecutive days of outflows from ETF funds that do not appear to be buying this dip.”
