A widely followed crypto analyst is taking a deep dive into Bitcoin’s (BTC) market rally, laying out his expectations for the crypto king.
In a lengthy new post, crypto trader Michaël van de Poppe attempts to answer the following question for his 693,700 followers on the social media platform X.
“Bitcoin rallies to $50,000 and higher, are we going to see $100,000 in the next few months?”
According to Van de Poppe, BTC’s activity over the next few months is “the ultimate question” with net inflows into BTC reaching over $2 billion in the past week.
“The price of Bitcoin has been accelerating. Prior to the ETF (exchange-traded fund) a rally from $25,000 to $49,000 has been taking place.
Since then, the sentiment quickly shifted towards an ultra-negative sentiment indicating that the markets had to go down to $30,000 due to the outflow of GBTC (Grayscale Bitcoin Trust).
However, markets reversed from $39,000 indicating massive interest in the Bitcoin Spot ETFs resulting in a peak at $53,000 and a constant inflow. What does that mean to us?”
The analyst attempts to answer the question in three parts. First, Van de Poppe argues that sentiment is a flawed indicator in market analysis, citing recent instances such as exaggerated optimism before Bitcoin’s ETF approval, which led to a correction.
Despite market strength, emotions can distort perceptions, leading to misguided trading decisions, as seen in exaggerated reactions to Bitcoin price fluctuations and GBTC outflows, underscoring emotions’ negative impact on investing, according to the analyst.
Secondly, Van de Poppe recommends waiting for a 20-40% correction from current prices before jumping into the BTC markets.
Finally, the trader cuts straight to the chase:
“What are the expectations?
Honestly, I think the moment that macroeconomic events are slightly negative… it would suggest that we’re going to see a correction.
This can also be a case where the inflow is decreasing or any other factor… leading to a switch in sentiment and therefore a substantial correction.
Those corrections, with the current sentiment, are going to be swift… it’s reasonable to suspect that the markets are peaking between $53-58,000 and are getting a 20-40% correction from there.
Whether it’s going to be in the coming weeks, or whether it’s in March, I don’t know. What I do know, is that markets are moving organic and do have those corrections, despite the overall sentiment.”
BTC is worth $52,206 at time of writing, up 10% in the last week.
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- Source: https://dailyhodl.com/2024/02/16/will-btc-reach-six-digits-crypto-trader-dives-deep-into-expectations-for-bitcoins-current-rally/
