A widely followed cryptocurrency analyst takes a deep dive into the Bitcoin (BTC) market rally and reveals his predictions for the king of cryptocurrencies.
Cryptocurrency trader Michael van de Poppe said in a lengthy new post. try to answer We asked our 693,700 followers on social media platform X the following question:
“Bitcoin has risen above $50,000, but will it reach $100,000 in the next few months?”
With net inflows into BTC reaching more than $2 billion in the past week, Van de Poppe said BTC's behavior in the coming months is the “ultimate question.”
“Bitcoin price is accelerating. We are seeing a rise from $25,000 to $49,000 ahead of ETFs (exchange traded funds).
Since then, sentiment has quickly changed to super negative sentiment indicating that the market has to fall to $30,000 due to the GBTC (Grayscale Bitcoin Trust) outflow.
However, the market reversed from $39,000 indicating significant interest in the Bitcoin Spot ETF, resulting in a peak of $53,000 and continued steady inflows. What does that mean for us? ”
Analysts try to answer the question in three parts. First, Van de Poppe argues that sentiment is a flawed indicator in market analysis, citing recent examples such as the exaggerated optimism before approval of a Bitcoin ETF that led to a correction. There is.
According to the analyst, despite market strength, emotions can distort perceptions and lead to incorrect trading decisions, as seen in the exaggerated reaction to Bitcoin price movements and GBTC outflows. , highlighting the negative impact emotions have on investing.
Secondly, Van de Poppe recommends waiting for a 20-40% correction from the current price before jumping into the BTC market.
Finally, traders cut to the chase.
“What are your expectations?
To be honest, I think the moment macroeconomic events turn slightly negative suggests a correction will occur.
This could also be due to reduced capital inflows or other factors, leading to a change in sentiment and thus a significant correction.
Given current conditions, it's natural to think that such a correction will be rapid…the market could peak between $53 and $58,000, with a 20-40% correction occurring from there.
We don't know if that will be in the next few weeks or in March. What I do know is that despite the overall sentiment, the market moves organically and there are certainly corrections like that. ”
At the time of writing, BTC is worth $52,206, up 10% in the last week.
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