Michael van de Poppe noted that Bitcoin has already crossed the $50,000 mark and continues to grow, so now the main question for traders is how its rate will change in the next few months. The analyst noted that before the advent of spot Bitcoin ETFs in the US, Bitcoin rallied from $25,000 to $49,000.
However, according to the trader, market sentiment is always the wrong indicator. Michael van de Popp explained that even before the ETF was approved in the United States, hopes for a potential new high for Bitcoin were growing stronger. That is, market sentiment often exceeds reality, resulting in exaggerated price movements. The analyst noted the actual correction of Bitcoin from $49,000 to $39,000 due to the outflow of funds from Grayscale’s GBTC fund. This outflow will continue to have a negative impact on the markets, which will lead to a correction in Bitcoin, Michael van de Popp is sure.
The analyst urged traders and investors to follow a strategy based on their risk tolerance. He advised short-term traders to exercise caution, especially when the market is growing rapidly. For example, if a trader buys a crypto asset for a short period of time, the rate of which has increased by 35% in 10 days, then this purchase may turn out to be unprofitable for him. Van de Popp expects that a Bitcoin pullback could occur when it reaches the $53,000-$58,000 level. As for long-term investors, they should wait for a correction of 20-40% before entering the market.
“If you buy Bitcoin with the intention of holding it for two to three years, and if you believe that Bitcoin will rise to $150,000 during this period, then there is nothing stopping you from purchasing it at these prices,” the analyst wrote.
According to a recent forecast by Michael van de Popp, the second cryptocurrency, Ether, will rise to $3,500-$4,000 in the next three to six months. This may be affected by the upcoming Dencun update on the Ethereum network.
Source: Bits
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