- Renowned trader and analyst Michael van de Poppe revealed that he is bullish on BTC.
- The analyst added that he does not believe BTC’s price will continue to drop much further in the coming weeks.
- In his tweet, van de Poppe downplayed the impact of the ongoing concerns surrounding Binance.
Renowned cryptocurrency trader and analyst, Michael van de Poppe, recently posed a question that has been on the minds of many Bitcoin investors and enthusiasts: “Did Bitcoin bottom on this correction or are we expecting $20K?” In his latest tweet, he delved into the current state of the market, the prevailing sentiment, and historical patterns to try and answer this question.
Prior to the correction, optimism ran high, but as fear gripped the markets, the responses turned bearish. This was evident in the Fear & Greed index, which stood at 38—a level comparable to that of March ’23 during a correction of 22%, according to van de Poppe.
The analyst also drew a parallel between the current correction and the 2014-2018 cycle. During that cycle, BTC experienced a deep correction in the same week, reaching the 200-Week Exponential Moving Average (EMA).
Remarkably, the current correction also saw the market leader’s price landing on the 200-Week EMA. While this correlation does not guarantee an imminent trend reversal, it underscores the cyclical nature of the cryptocurrency market.
Van de Poppe went on to discuss the potential for a pre-halving rally in BTC’s price—a rally expected to be the high point for quite some time, according to the analyst. He projected this rally to likely occur in the fourth quarter of this year, a timeframe historically favorable for the cryptocurrency market.
Beyond technical analysis, van de Poppe highlighted the significance of upcoming economic events and news data that could impact its trajectory. The unemployment and PMI data for the U.S., the Consumer Price Index (CPI), and the Federal Open Market Committee (FOMC) meeting are events to watch in the coming weeks, noted the analyst.
There are all events that could influence yields, gold, and the dollar. Given BTC’s correlation with these assets, they become important indicators to watch, according to van de Poppe.
Turning his attention to the cryptocurrency space specifically, van de Poppe mentioned the ongoing conflict between Grayscale and the U.S. Securities and Exchange Commission (SEC), the potential Bitcoin Spot Exchange-Traded Fund (ETF) launch, and the Ethereum Futures ETF are all events to watch. He shared that these events have potential market-moving implications.
The legal battle between XRP and the SEC also remains a point of contention. Interestingly, he downplayed the impact of ongoing concerns around Binance, likening it to the Tether controversy in 2018.
Van de Poppe ultimately expressed optimism about the ongoing correction, suggesting that the odds of its finalization are significant. He leaned towards a more positive outlook, considering the drastic sentiment shift that has occurred.
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