Van de Poppe Looks Into Cardano – Predicts a Supply Shock For Bitcoin
Michaël van de Poppe, a prominent cryptocurrency analyst and trader is closely following Cardano’s price action. He is also predicting an upcoming supply shock for Bitcoin.
The analyst shares with his 404K followers on Twitter followers that he expects Cardano to slightly correct against its Bitcoin pair (ADA/BTC) in order to prepare for the next up climb.
“Expecting continuation on Cardano to be happening here. BTC pair [is] doing well.”
Expecting continuation on #Cardano to be happening here. $BTC pair doing well.
Looking at the above chart, the trader expects Cardano to consolidate at 0.000045 BTC support, before continuing to move up.
Regarding the leading crypto asset, Bitcoin, van de Poppe predicts BTC to sink to lower levels, before sparking a rally towards $50,000.
“Bullish divergence is ready to be played out with Bitcoin while consolidating at support. A higher low would be beneficial for continuation towards $50,000.”
Bullish divergence is ready to be played out with #Bitcoin, while consolidating at support.
A bullish divergence occurs when prices fall to a new low while an oscillator fails to reach a new low. This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often a bullish divergence marks the end of a downtrend.
The analyst also points out another key signal calling Bitcoin to run higher: the amount of BTC sitting on crypto exchanges is declining.
“Bitcoin exchange reserves are getting to very low levels.
That’s a signal that we’ve got more and more holders.
The inevitable is still about to happen -> heavy supply shock upwards in which we’ll get a big run to higher numbers.”
#Bitcoin exchange reserves are getting to very low levels.
That's a signal that we've got more and more holders.
The inevitable is still about to happen -> heavy supply shock upwards in which we'll get a big run to higher numbers.
Low levels of Bitcoin exchange reserves mean that the reserves of BTC is low in exchanges available for trading. It’s usually a sign that investors are holding on to their coins as they expect the leading crypto asset to trend higher.
