10x Research CEO Advises Caution and Strategic Entry Points
Markus Theilin, CEO of 10x Research, advises traders to target the “low $40,000s” range for an optimal entry point into Bitcoin during the current market dip. According to Theilin, Bitcoin needs to return to levels seen around the launch of spot Bitcoin ETFs for a prime buying opportunity. The last time Bitcoin traded within this range was on February 6th at $42,577.
“To ideally time the next bull market entry, we aim for Bitcoin prices to fall into the low $40,000s,” said Theilin. This sentiment aligns with other analysts, including Cane Island Alternative Advisors founder Timothy Peterson, who noted in an X post that “$40k and $80k are equally likely in the next 60 days.”
A 10x Research report emphasized the importance of a break below Bitcoin’s established support level in its downtrend. The report highlighted that despite Bitcoin’s current recovery efforts, overcoming the strong resistance from this downtrend will be challenging after the recent support break.
CryptoSeacom founder CryptoRover also pointed to the likelihood of Bitcoin hitting $40,000, addressing his 808,400 followers on X. Similarly, Gokhstein Media founder David Gokhstein expressed interest in buying more Bitcoin if prices drop to $50,000 or $40,000.
Caution Against Premature Buying
Theilin has cautioned against premature “buying the dip” in Bitcoin, labeling it as “too risky” despite some signs of stabilization. “Financial markets are like puzzles that need to be reassembled periodically, with new drivers of asset prices emerging,” he explained. The current dip is distinct from those in April and June, where sharp declines were offset by increased leverage. Theilin noted that the current period of slow trading, particularly in August and September when many institutional players are on vacation, complicates the market dynamics.
“August and September are notorious for slow trading. Many institutional players are on vacation, and deploying large amounts of capital is the last thing on their minds,” Theilin added, stressing the importance of risk management during this period. He believes opportunities will likely arise once this slow period concludes.
ETF Inflows and Investor Sentiment
Elevated economic concerns have affected U.S.-based spot Bitcoin ETFs, resulting in three consecutive days of outflows totaling $148.6 million on August 6th. Fidelity Advantage Bitcoin ETF Fund and Grayscale Bitcoin Trust ETF were significant contributors, shedding $64.5 million and $32.2 million, respectively. Data from Farside Investors shows that all 11 Bitcoin ETFs recorded zero net inflows during this period.
Theilin highlighted that this stagnation in ETF inflows indicates a lack of retail investor confidence in “buying the dip.” He observed that investors in Bitcoin ETFs are currently “underwater” since the average purchase price is around $60,000.
“Given Bitcoin’s current downtrend, retail investors, who often follow trends, may hesitate to engage in massive buy-the-dip ETF flows,” he added.
Conclusion
Markus Theilin’s analysis suggests that a strategic entry point for Bitcoin lies in the low $40,000s range. He urges caution and risk management during this slow trading period, emphasizing that opportunities will likely emerge once the market stabilizes. The current lack of ETF inflows and investor hesitation further underscores the need for strategic planning in the volatile crypto market.
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