The Bitcoin Price Surge and the Possibility of a 40% Correction
The recent surge in the price of Bitcoin, reaching above $50,000 and briefly hitting $53,000, has surprised the market. However, crypto analyst Michaël van de Poppe believes that this could signal the need for a possible correction, which he predicts could be as deep as 40%. Van de Poppe explains that market sentiment is often a wrong indicator and should not be solely relied upon in investment strategies.
Sentiment Can Tell The Wrong Story For Bitcoin
Van de Poppe provides examples where sentiment has proven to be misleading. One instance was when calls for a new all-time high were made following Spot Bitcoin ETF approvals. Although the BTC price rallied, it did not reach a new high. The analyst emphasizes that emotions often have a negative impact on trading and investing.
Another scenario where sentiment was wrong was when the price dropped from $49,000 to $39,000 due to outflows from the Grayscale Bitcoin Trust (GBTC). Contrary to market expectations, these outflows eventually slowed down, leading to a BTC price rally. Additionally, the current market trend has generated significant interest among investors. However, Van de Poppe warns that emotions and sentiment can lead to losses.
BTC Price To See A 40% Correction?
Following the recent rally in the Bitcoin price, Van de Poppe advises investors to have a game plan when approaching the market. He points out that there may be a market correction triggered by macro-economic events such as higher CPI and decreased inflows as investors begin to withdraw from the market.
The analyst clarifies that inflows are not limited to Spot Bitcoin ETFs alone and warns that corrections could be swift with the current sentiment. Van de Poppe predicts that the market could peak between $53,000 and $58,000, followed by a 20-40% correction. However, the exact timing and triggers for these corrections remain uncertain.
By
By
By
By
By
By