Bitcoiners should consider holding off on new investments until the asset’s price drops to the low $40,000 zone for an ideal entry point ahead of the next Bull Run, according to a crypto market analyst. “To ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low 40,000s,” stated Markus Thielen, head of Research at 10x Research, in an August 7 report. Then, Thielen said, “We would expect another major rally attempt.”The last time Bitcoin was in this range was February 6, trading at $42,577, according to CoinMarketCap data.
At the time of publication, Bitcoin is valued at $56,848, down 12.89% since July 31. Thielen is not alone in his analysis. Other analysts also foresee Bitcoin potentially falling into the $40,000s in the coming months. “Both $40k and $80k are equally likely in the next 60 days,” Timothy Peterson, founder of Cane Island Alternative Advisors, wrote in an August 5 post on X. “If Bitcoin breaks this support, $40k is next,” Crypto Rover told his 808,400 followers. David Gokhstein, founder of Gokhstein Media, also expressed a desire to see Bitcoin drop to $50K or even $40K, viewing it as a perfect buying opportunity.
Thielen remains cautious about the HODLing strategy, especially as Bitcoin has fallen below the $60,000 support level for two consecutive days. He advises against a buy-and-hold approach due to expected near-term volatility. “Bitcoin and Ethereum are not showing the consistent, high Sharpe ratio uptrends that the U.S.stock market investors have enjoyed with minimal effort,” Thielen noted. Despite this, he still sees potential in the current price of Bitcoin but suggests setting a stop loss at $54,000 due to ongoing risks.
“Given Bitcoin’s current downtrend, retail investors may hesitate to engage in massive buy-the-dip ETF flows,” Thielen added. He highlighted that despite $17 million flowing into spot Bitcoin ETFs since their January 11 launch, Bitcoin dropped below $50,000 on August 5, approaching its launch day price of $46,656.