Popular cryptanalyst Michael van de Poppe says that if the price of the leading cryptocurrency falls below $38,000, bitcoin (BTC) may adjust to $31,000.
“A rather sharp correction is inevitable for Bitcoin below $38,000”
In a YouTube video, Michael van de Poppe states that bitcoin has been trading in a sideways range since the beginning of the year, but the recent minor correction below $40,000 has opened the door for further price declines. Although the analyst believes that it is still possible to trade at $31,000, he states that this level has not been tested, given recent trading patterns. Michael van de Poppe explains:
If we lose $38,000 in BTC, I predict we will start falling south and then expect a pretty sharp correction.
Michael van de Poppe: Strong Dollar Affects Bitcoin
The analyst notes that the inability of Bitcoin to start another rally may be due to the strong performance of the dollar, but the crypto asset demonstrates stability. However, the analyst notes that the market will look forward to the next rate hike, which will probably lead to a reversal of the dollar, which will eventually have a positive impact on bitcoin.
In addition to the dollar effect, investors will also consider the possibility of the next halving, which will happen in almost two years. As we wrote in the Somanews news, historically halving has caused a steady and significant increase in the price of bitcoin.
“There may be some momentum if BTC breaks the $40,200 mark.”
On the other hand, the analyst states that investors should expect some momentum if Bitcoin breaks the $40,200 mark. Michael Poppe also reminds us that the next Bitcoin price behavior may be influenced by the fact that since the beginning of 2022, the asset has been trading in the range of $30,000 to $46,000.
In addition, we conclude that we are trying to break above $44,600 and eventually fall below the range that will haunt the lower side of this range.
The analyst’s price analysis was done after bitcoin dropped below $40,000 in the last 24 hours. At the time of publication, the asset was trading at $39,607.
While Michael van de Poppe emphasizes the stability of Bitcoin, Bloomberg commodity strategist Mike McGlone believes that this asset is suitable as a pledge in changing the global paradigm that bans cryptocurrencies in 2021, caused by Russia’s invasion of Ukraine and China.