Top Analyst van de Poppe Updates Bitcoin And Draws Key Levels
According to Michaël van de Poppe, a top crypto analyst, Bitcoin (BTC) might be setting up for a bullish reversal based on-chain metrics.
Van dde Poppe shared with his 589K followers on Twitter that BTC’s hash rate has reached another all-time high, which has often historically has happened before the leading digital asset has launched into rallies.
“Bitcoin hash rate has reached an all-time high, while crypto ban has been taking place.
This shows that the demand for mining Bitcoin is increasing, the network is getting safer and eventually, the price will follow this metric.”
#Bitcoin hash rate has reached an all-time high, while Crypto ban has been taking place.
This shows that the demand for mining #Bitcoin is increasing, the network is getting safer and eventually, the price will follow this metric. pic.twitter.com/T90mTpmyxH
Hash rate keeps track of the total computational power used to mine BTC and power transactions. It also measures security; the higher the hash rate, the better the network is protected against attacks.
Regarding the near-term moves for the Bitcoin, van de Poppe shared in a recent video update that a break of either below $38,000 or above $40,500 could set the stage for Bitcoin in the coming days.
“You should be waiting until we get a clear breakdown beneath $38,000. That is probably going to be short opportunities.
And if we get back above $40,500, flip that zone, that’s probably going to be long territory. I am long since $39,000, and I’m actually looking for longs a little bit more on altcoins at this point if Bitcoin is going to resolve itself into holding a crucial support level, which is the $39,000 zone.
If we do break $40,500, I think the next level to look at is the level around $43,000, taking liquidity there and $43,2000 which is already a move of approximately 10%.”
As Bitcoin has been moving sideways with low-volatility price action, the analyst projects that a large impulse wave is probably happening soon. According to him, a break upwards rather than downwards is more probable, as the US dollar index (DXY) is more likely to correct.
“A big breakout is around the corner. I am assuming we are going to upwards if the USD is going to show additional weakness. And especially if the Fed is not going to announce heavier tightening than what we are already expecting. That will mean that the dollar going to get more weakness and that Bitcoin is resulting into an upwards move.”
At time of writing, Bitcoin trades at $38,664, up 2.43% on the daily chart.
