The post Will Bitcoin (BTC) Price Crash 20% in Coming Weeks ? Here’s What Crypto Expert Michael van de Poppe Predicts appeared first on Coinpedia Fintech News

Expert cryptocurrency trader and analyst Michael van de Poppe shares insights on Bitcoin’s recent rally, making his 393,200 X followers realize the importance of understanding the market sentiment.

Michael’s analysis delves into the dynamics surrounding Bitcoin’s recent price movements, affected by factors like ETF approval, sentiment shifts, and potential corrections.

The Role of Sentiment in Market Dynamics 

Van de Poppe highlights Bitcoin’s remarkable journey from “$25,000 to $49,000 pre-ETF approval,” indicating that the price surge resulted from a strong market sentiment. However, he emphasizes that sentiment is often a misleading indicator, overshooting reality and causing emotional reactions in the market.

Michael illustrates how outflows from Grayscale’s Bitcoin Trust (GBTC) led to the emergence of “negative sentiment unfolded during the correction from $49,000 to $39,000.” Therefore, he cautions against relying solely on sentiment, as it exaggerates reality, leading to misconceptions about market direction.

#Bitcoin rallies to $50,000 and higher, are we going to see $100,000 in the next few months?

The ultimate question is what the price of Bitcoin is going to do in the upcoming period.

The inflow has netted more than $2 billion in a week.

What can we expect with Bitcoin? …

— Michaël van de Poppe (@CryptoMichNL) February 16, 2024

Analysing Bitcoin’s current momentum, Van de Poppe acknowledges a significant inflow into BTC Spot ETFs, indicating growing interest. However, he critically questions the sustainability of this growing interest, potential outflows, and macroeconomic impacts that could influence Bitcoin’s future trajectory.

Also Read: Missed Bitcoin at $45,000: No Worries Bitcoin May Offer a Good Buying Opportunity Soon!

Gameplan for Investors

Van de Poppe advises traders and investors to have a “relatively strict and simple gameplan”. Van de Poppe suggests evaluating the “risk-reward ratio,” especially amid rapid asset appreciation for short-term trading. Long-term investors are advised to exercise patience, awaiting standard corrections of “20-40%” before entering the market.

What are the Potential Expectations?

Analyst Michael van de Poppe anticipates potential corrections, speculating on triggers, citing “macroeconomic events or decreased inflows” as potential catalysts.

While the exact timing remains elusive, Van de Poppe forecasts a peak between “$53,000 and $58,000,” coupled with a subsequent “20-40%” correction. He underscores the organic nature of market movements and the inevitability of corrections.

Michael van de Poppe’s analysis provides valuable insights for navigating Bitcoin’s volatile market. Traders and investors are advised to approach the market with a strong understanding, considering both short-term and long-term potential.