dailyhodl.com
Widely followed crypto strategist and trader Michaël van de Poppe says he believes Bitcoin and the crypto markets are likely due for a “healthy” correction.
In a new strategy session, Van de Poppe tells his 116,000 YouTube subscribers that Bitcoin (BTC) must stay above a key level if it wants to keep grinding higher.
“If we lose $48,000, we could be having a very harsh correction towards any of these lows again ($44,600) and potentially even $41,400. And that’s probably going to give some pain to the altcoins, too…
Usually, what Bitcoin wants to do is that it grinds up, rejects in a very harsh manner and stabilizes for a range.”
The crypto analyst highlights that the sentiment of investors has swung from fear to greed amid the recent strength of the crypto markets.
“We’ve just witnessed sentiment going from a funeral state towards, ‘We are buying lambos again.’ In between, you’ve got a healthy corrective move that is needed for the markets to continue moving afterwards, which means that I’m looking at such a structure right now.”
Van de Poppe says that a move below $48,000 could ignite the start of a corrective move that sends Bitcoin down to support at $44,000.
Although Van de Poppe is short-term bearish on BTC, he says the retracement would not likely lead to a heavy correction.
Looking at Ethereum, the crypto trader says he believes the leading smart contracts platform will likely revisit its immediate support below $3,000.
“I think that based on the fact that we just made a higher low, we are eager for a retest of this higher low here ($2,980). Especially if Bitcoin is not able to break $51,000, I think we’re going to build up some more strength… If $2,980 is lost, we’re going to look at the next level, which is [$2,600]. That is the very obvious level that everybody wants to long. I don’t think we’re going to get to that level.”