Bitcoin Price Prediction: Could $40,000 Be the Best Time to Buy Bitcoin? Experts Say Yes!

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Bitcoin (BTC) dropped below $50,000 due to the Bank of Japan’s interest rate increase and the sharp decline in the Japanese stock market, which has not been seen since 1987, causing the decline.10X Research CEO Markus Thielen says buying Bitcoin now is too risky, but other analysts see signs of recovery. However, the analyst sticks to the $40K target for BTC as an ideal entry point ahead of the next major bull run.

Here’s what he has to say.

Strategic Timing for Investors

Markus Thielen, Head of Research at 10x Research, emphasizes the importance of timing for maximizing returns. According to Thielen, Bitcoin prices need to fall into the low $40,000s to set the stage for the next substantial rally. The last instance Bitcoin traded within this range was in early February, at $42,577. Currently, Bitcoin stands at $56,848, marking a 12.89% decline since the end of July. 

Thielen noted that the current dip is different from those in April and June, as past declines were ignited by increased leverage. This time, with slow trading in August and September and many institutional players on vacation, significant capital deployment is unlikely. He advises careful risk management now, suggesting that better opportunities may emerge after this slow period ends.

Market Consensus on “Buy the Dip”

But it is not just Thielen who believes in this theory, Timothy Peterson, founder of Cane Island Alternative Advisors, highlights an equal probability of Bitcoin hitting $40,000 or $80,000 in the upcoming months. Similarly, Crypto Rover and Gokhstein Media founder David Gokhstein view a drop to $40,000-$50,000 as a best buying opportunity.

Rethinking the Hodling Strategy

Thielen advises caution against a simple buy-and-hold approach in the current market environment. He points out that Bitcoin and Ether are not providing the high risk-reward ratios seen in the US stock markets. Instead, he recommends placing a stop loss at $54,000 to mitigate potential risks, especially given the recent three-day outflow streak from Bitcoin ETFs.

Impact of Bitcoin ETFs

Despite significant investments into spot Bitcoin ETFs, amounting to $17 billion since their January launch, Bitcoin’s price has dropped below $50,000. This decline raises concerns about retail investors’ reluctance to buy during the dip, despite the substantial inflows. Thielen notes that investors in these ETFs, with an average price of around $60,000, are currently “underwater.”

Future Prospects

Thielen sees the current price as a buying opportunity, but he stresses the necessity for smart risk management owing to market volatility. Investors should stay alert and wait for lower entry opportunities to maximize gains. Capitalizing on the next bull market may need careful preparation and timing as Bitcoin continues its downturn.

The crypto world is known for its volatility. Are you prepared to weather the storm?