Analyst Van de Poppe Looks Into Bitcoin Amid Market Wide Correction

Michaël van de Poppe, a top cryptocurrency analyst and trader is looking into the leading crypto asset, Bitcoin (BTC), and what is coming to its way next, amid global market crash and the recent news of a new coronavirus variant.

The analyst shared in a recent video with his 148K subscribers on YouTube that it’s not a single thing, but rather a combination of concern on more lockdowns coming, and a cyclical correction that has investors worried.

“Not only the crypto markets are showing weakness at this point, as also the European stock markets opened significantly red today… and also the US stock markets are going to open in the red. But there are certain fears about the coronavirus lockdowns coming again. But there are also discussions about tapering happening at this point, and actually, the markets were due for a correction too. We have been grinding up heavily while the actual impact of a potential lockdown was not visible yet.

Right now we do see one, and we still have a very natural and healthy corrective move which we haven’t been seeing in the past few months. In September we’ve had one, but since then no real correction has been taking place.

So finally we’re getting it, and when the dollar is showing strength it would make sense that the equities are going to have some pain too. Bitcoin has been seeing this correction already. Equities are following suit in the past week now too.”

Van de Poppe digs into Bitcoin’s latest price correction, and believes that BTC is not entering a bull market. Relying on traditional four-year model and similar for predicting future price action might not provide much accuracy for the time being, according to the analyst.

“I really believe the reason why Bitcoin is dropping right now is because of the macroeconomics taking place. But regardless of that, I’m still very sure that the markets are not going to have a bear market at this stage. I think we are still eager for continuation in a bullish manner, but I do realize that the lengthening cycle’s most likely going to take place. A healthy correction is also happening at this point, in which the question becomes, where is Bitcoin going to bottom out? And how are altcoins going to perform out of that?

We can throw away the four-year cycles, we can throw away PlanB’s stock-to-flow model with these predictions because it’s not valid anymore. We are in a different environment when it comes to the markets right now. Clearly, we are currently having a harsh corrective move… but it shows that the markets are not predictable and expecting Bitcoin to run in four-year cycles is just not the case.”

Looking in more detail into BTC price action, the analyst draws $55K as a key support level, but doesn’t rule out a further decline to $48K level. Regardless, he doesn’t believe that the bull cycle has ended yet.

“When we’re looking at Bitcoin against [USD], at this point we still have a very important support level [$55,000] that we are acting on right now. The crucial thing when it comes to the daily time frame is that we are flipping this level with $66,000 as resistance and started to crack south.

Meaning that currently, we are into higher time-frame support, but definitely depending on how this daily’s going to close, this is going to be weak going into the weekend, and especially going into next week, it will probably cause some more pain across markets.

In that case, when we’re looking at levels that we should be watching, [$55,000 to $55,600] is the first real level that you should be looking out for. However, the crucial level to me is still this level around $48,000. Even if we get in that region, I still believe that we’re bullish in markets and we’re just having a very natural corrective move before we’re going to accelerate again in 2022.”

At time of writing, Bitcoin trades at $54,405 with 6% loss on a daily chart.