Sideways Price Movement May Continue for the Next Few Months

• The popular analyst Michael van de Poppe shed some light on the current state of the market in his latest tweet.
• According to the analyst, the current market cycle is reminiscent of the 2015 market which recorded prolonged sideways movement.
• Van de Poppe noted that recent bullish developments in the market are overshadowed by overwhelming bearish sentiment.

Michael van de Poppe, a renowned cryptocurrency trader and analyst, recently took to Twitter to address investors’ concerns and shed light on the current quiet state of the cryptocurrency market. In his insightful tweet, he delved into the historical context of Bitcoin’s cycles and provided his perspective on the current bear market.

Van de Poppe reminded his readers that Bitcoin (BTC), the flagship cryptocurrency, has experienced a series of cycles characterized by periods of expansion, significant correction, accumulation, and renewed expansion. These cycles, however, vary in length and intensity, noted the analyst.

According to the analyst, the present bear market is reminiscent of the 2015 market. He highlighted that this was a period of prolonged sideways movement that eroded some investors’ faith in the technology despite its solid fundamental growth.

Drawing parallels between the two periods, he pointed out that the current price of BTC is far from the peak it reached in November 2021. This is after the market leader’s price plummeted over 50% and entered into a bear market that continued for 490 days. Beyond BTC, van de Poppe noted that altcoins and NFTs have faced even steeper declines.

Acknowledging the emotional turmoil many investors are grappling with, van de Poppe shared his own experiences from previous market cycles, including the heavy bear cycle of 2018-2019, the COVID-induced crash, and the ongoing bear market. These emotional trials, he asserted, provide valuable lessons that can be applied in future cycles.

Recent developments such as Bitcoin’s gradual adoption by governments and institutions might suggest positive prospects for the cryptocurrency. However, van de Poppe argued that these events are not immediately reflected in prices.

He cited examples like Blackrock’s investment in mining companies, multiple Bitcoin and Ethereum ETF applications, the launch of an ETF in Europe, and the opening of Hong Kong to cryptocurrency. These advancements, he pointed out, have been overshadowed by the market’s prevailing bearish sentiment, a condition he terms the ‘bear market modus.’

Addressing the prolonged period of stagnation that characterizes bear markets, van de Poppe introduced the concept of ‘time capitulation.’ This phase, he suggested, tests investors’ patience and resolve, but it is a necessary step in the cycle.

Furthermore, he predicted that the market will eventually move past this stage in the coming months, paving the way for a renewed phase of expansion and acceleration. In light of these insights, van de Poppe’s advice to investors is to maintain composure, reflect on the sources of their emotional pain, and learn from the experiences gained during this challenging period.

At the time of writing, CoinMarketCap indicated that the total market capitalization had dropped 0.40% during the previous 24 hours. Consequently, the cryptocurrency market’s collective valuation was estimated to be $1.05 trillion.

Meanwhile, BTC was changing hands below the $26K mark at $25,942.37. This was after the leading cryptocurrency printed a 24-hour loss of 0.33%. This negative daily performance also pushed BTC’s weekly performance further into the red zone as well – taking it down by 0.55%.

Investors and traders will want to take note of the fact that a significant bearish technical flag was triggered on BTC’s daily chart throughout the past 48 hours. During this period, the 20-day EMA line crossed below the 200-day EMA line. This suggested that medium-term momentum has shifted in favor of sellers, which may result in BTC’s price dropping in the coming days.

If this bearish technical flag is validated, BTC may look to retest the next crucial support level at $24,200 in the coming week. This bearish thesis will be invalidated if the cryptocurrency closes a daily candle above $26,915. In this scenario, the market leader’s price may rise to $30,070 in the following fortnight.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.