Despite the Bitcoin (BTC) price’s recent nice rally, not everyone is optimistic. Shortly after the crash, Markus Thielen, head of research at 10x Research, predicted that Bitcoin could potentially drop towards $40,000.
According to Thielen, Bitcoin investors should wait for the price to drop to the low $40,000 zone to get the best entry price.
Will the Bitcoin price drop?
“I expect Bitcoin price to drop to the low $40,000 levels, after which we expect another major price increase,” Thielen said in an Aug. 7 report.
The last time Bitcoin was around these price levels was on February 6. At the time of writing, the Bitcoin price is trading at around $57,000, which is up about 16 percent from the low of $49,000 recorded on Monday.
The strong bounce is cause for optimism, but Thielen isn’t alone in seeing lower prices as possible. Other analysts also believe Bitcoin could fall into the $40,000 range in the coming months. Timothy Peterson, founder of Cane Island Alternative Advisors, wrote in an August 5 X post: “$40k and $80k are equally likely in the next 60 days.”
David Gokhstein, founder of Gokhstein Media, also shares Thielen’s view that lower prices would be beneficial for long-term holders. “I would like to see Bitcoin drop to $50K, or even $40K. That would be a perfect opportunity to buy more.”
Thielen recommends a stop loss
Thielen advises investors to wait for now. He does not think it is a logical choice to buy Bitcoin at the moment, because according to him Bitcoin has a lower risk-reward ratio than, for example, shares.
“Both Bitcoin and Ethereum are not exhibiting the steady, high uptrends that investors in the US stock market have enjoyed with minimal effort,” Thielen said.
For investors who still consider the current price as an interesting entry level, Thielen recommends using a stop-loss. He sees $54,000 as an important level. If Bitcoin falls below this level, he expects an aggressive correction to below $50,000.
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Source: https://newsbit.nl/markus-thielen-bitcoin-koers-gaat-naar-40-000-zakken/
