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Bitcoin Roadmap to $150,000: Why a 40% Correction Is Expected

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Bitcoin price rose above $50,000 and mounted a sustained rally to $53,000 before falling again, something that took the market by surprise. However, with expectations increasingly strong for the cryptocurrency, this could signal the time for a possible correction and crypto analyst and market expert Michaël van de Poppe believes this correction could reach 40%.

Sentiment Could Tell the Wrong Bitcoin Story

In a post made on X (formerly Twitter), the crypto analyst described a series of things that could affect the price of Bitcoin, whether positively or negatively, and one of them is market sentiment. Michaël van de Poppe explained that market sentiment “is always the wrong indicator” and is something that investors should apply to their strategy.

To elaborate on this point, the crypto analyst gave some examples where the sentiment turned out to be wrong. The first is the Spot Bitcoin ETF approvals, which have sparked calls for a new Bitcoin all-time high. However, although the price of BTC has increased, it has not reached a new all-time high. “The strength of the markets has already been reflected in real price action, but sentiment always prevails as emotions are reflected in scenarios, hence the reason why emotions have a negative impact on trading and investing,” the analyst explained.

Michaël van de Poppe also pointed out another scenario where the sentiment was wrong and that was when the price fell from $49,000 to $39,000. This was a result of capital outflows from the Grayscale Bitcoin Trust (GBTC), which the market expected to continue. However, outflows would eventually slow down, giving room for the price of BTC to rise.

Last but not least is the current market trend which, according to the analyst, is generating a lot of interest. Unsurprisingly, the sentiment among investors is that this interest would continue, but the crypto expert explains that in situations like these, “emotions always trump reality and sentiment far trumps price action, which is why That’s why people start losing money.”

Will BTC price see a 40% correction?

Following the huge rally that Bitcoin’s price has been experiencing in recent weeks, the crypto analyst advises investors to have a plan of action when approaching the market, whether for trading or investment purposes. He notes that there is a possibility of a market correction when there is a change in macroeconomic developments. One is the CPI, which rose last week, as well as a decline in capital inflows as investors began to withdraw from the market.

Michaël van de Poppe clarifies that inflows are not just coming from spot Bitcoin ETFs, as there are other avenues of entry where investors can also start selling their coins. “These corrections, with current sentiment, will be quick”, warns the analyst. “I don’t know exactly where this will happen, but given the data, it is reasonable to suspect that markets are peaking at $53,000 to $58,000 and seeing a 20-40% correction from there.”

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