A widely followed crypto analyst takes a deep dive into Bitcoin’s (BTC) market rally and outlines his expectations for the crypto king.
In a long new post, crypto trader Michaël van de Poppe tries to answer the next question for his 693,700 followers on the social media platform X.
“Bitco Rises to $50,000 and Beyond, Will We See $100,000 in the Coming Months?”
According to Van de Poppe, BTC activity in the coming months is “the ultimate demand,” with net inflows into BTC reaching more than $2 billion in the past week.
“The price of Bitcoin is accelerating. Before the ETF (exchange-traded fund), there has been a rally from $25,000 to $49,000.
Since then, sentiment quickly shifted to ultra-negative sentiment, indicating that the markets needed to fall to $30,000 due to GBTC (Grayscale Bitcoin Trust) outflows.
However, the markets bounced back from $39,000, indicating massive interest in the Bitcoin Spot ETFs, resulting in a peak at $53,000 and steady inflows. What does that mean for us?”
The analyst tries 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 over-optimism before the approval of Bitcoin’s ETF, which led to a correction.
Despite the market’s strength, emotions can distort perception, leading to misleading trading decisions, as evidenced by overreactions to Bitcoin price swings and GBTC outflows, which the analyst said underlines the negative impact of emotions on investing.
Secondly, Van de Poppe recommends waiting for a 20-40% correction from current prices before entering the BTC markets.
Finally, the trader cuts straight to the chase:
“What are the expectations?
Frankly, I think at the moment when macroeconomic events are somewhat negative… it would indicate that we are going to see a correction.
This could also be the case where inflows decrease or some other factor… that leads to a change in sentiment and therefore to a substantial correction.
These corrections will happen quickly given current sentiment… it’s reasonable to suspect that markets will peak between $53-58,000 and see a 20-40% correction from there.
Whether it will be in the next few weeks, or whether it will be in March, I don’t know. What I do know is that the markets move organically and undergo these corrections despite the general sentiment.”
BTC is worth $52,206 at the time of writing, up 10% in the past week.
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