Bitcoin could rally to $40k then correct says analyst

On Feb 21, 2023

According to Michael van de Poppe, BTC is trending down, but long-term strength remains.

The analyst believes that BTC could go to a high of $40,000 before facing harsh corrections. Michal van de Poppe, CEO and founder of trading business Eight, in line with the prediction, went on to assert that the recent slump will be brief.

“The current market correction is good news for those looking for entry positions. But, unfortunately, we may continue down for a while longer. So, a week of consolidation before carrying on.”
Michal van de Poppe, CEO and founder of Eight

According to van de Poppe’s study of the bitcoin price chart, the cryptocurrency’s recent price movement has been contained inside a contracting wedge formation, with $22,500 serving as a crucial support zone below.

His long-term prognosis claims new highs followed by a deeper downturn, which is still likely to bring bitcoin back to $20,000.

Corrections remain to be relatively shallow.
I think that we’ll continue the run towards $35-40K before we’ll have a harsh correction, maybe even to $20-25K.
Maximize profits, start allocating towards $USDT the higher we come, buy on the correction in second half of 2023.
— Michaël van de Poppe (@CryptoMichNL) February 20, 2023

Poppe anticipates that BTC will continue to advance toward $35,000–40,000 before seeing a severe reversal, maybe down to $25,000–30,000.

“The higher we go, the more capital should be allocated to $USDT, and then, in the second half of 2023, investors should purchase on the downturn.”
Michal van de Poppe, CEO and founder of Eight

Thoughts on BTC price movements

Monitoring resource Material Indicators found that bitcoin needs support at the 200-week moving average (MA) of around $25,100 to reverse its long-term trend amid concerns about whale movements on exchanges.

According to analysts’ opinions on Twitter, this is still distributed in a bear market rally until we get complete candles above the 200 WMA. With the bid well over $24,000, shorting from this level has about as much short-term risk as buying as per the analysis.

The Notorious B.I.D. wall moved again.
IMO, until we see full candles above the 200 WMA this is still distribution in a bear market rally, and with the bid wall above $24k, shorting from this level has about as much short term risk as longing.
How are you #trading this #BTC PA? pic.twitter.com/49gHD6o2LY
— Material Indicators (@MI_Algos) February 21, 2023

How is bitcoin doing today?

Today hasn’t been much of a pleasant day for bitcoin bulls. Although mild, the digital gold registered a 0.9% price decrease as of the time of writing, which saw a slight disruption of bitcoin’s on-chart upward trend.

BTC chart source: CoinMarketCap

Bitcoin, whose circulating supply stood at 19,298,012 BTC, saw a decrease of more than 2% in its trading volume as of the time of writing, according to the CoinMarketCap stats.

Credit: Source link