As a seasoned crypto investor with years of experience in the market, I’ve seen my fair share of price fluctuations and market trends. Van de Poppe’s analysis is a cause for concern, as Bitcoin’s current position at the lower end of its range could lead to a significant correction if it fails to hold. The potential drop to $52,000-$55,000 represents a potential loss for investors like myself who have seen Bitcoin prices reach new highs in recent months.
Bitcoin, the pioneering digital currency, is currently under close examination by numerous financial experts and investors due to its difficulty in holding onto its market dominance.
As a crypto investor following Michaël van de Poppe’s analysis, I’ve noticed his recent worries about Bitcoin’s price trend.
Bitcoin Risks Dropping to $52,000, Why?
On Elon Musk’s social media site X, Van de Poppe noted that Bitcoin presently hovers near the bottom of its existing price range, which is essential for preserving its uptrend.
As a researcher studying the cryptocurrency market, I would caution that if Bitcoin cannot sustain its current position, there’s a possibility of a market correction. Prices might dip as low as $52,000 to $55,000.
The prediction emerges as Bitcoin strives to hold its ground above the $61,000 threshold. However, the latest market signals hint at an impending downturn, casting doubt on this level’s sustainability.
According to Van de Poppe’s assessment, not keeping the lower price range may result in substantial adjustments, potentially influencing investor confidence and market behavior.
“The current level of Bitcoin falls within the price range’s lower boundary. Ideally, we would want Bitcoin to stay within this range for the uptrend to persist.”
If this doesn’t hold, then we might expect $52-55K as a potential low on this correction.
— Michaël van de Poppe (@CryptoMichNL) May 9, 2024
Lately, information from analytics company IntoTheBlock indicates a significant decrease in Bitcoin whale purchases within the last month. These substantial investors, possessing more than 1,000 Bitcoins, have historically acted as market stabilizers, especially during price downturns.
As a researcher studying the trends in the cryptocurrency market, I’ve noticed a significant decrease in the purchase of whale-sized Bitcoins, particularly during market corrections. This trend implies a waning influence of these large investors on the market and could potentially signal a broader loss of interest in Bitcoin at current price levels.
As an analyst, I would interpret this pattern as a potential sign of a new approach by whales in handling Bitcoin or a broader adjustment in the market’s perception of the cryptocurrency. This shift could result in reduced backing for Bitcoin prices during market slumps.
BTC Surging Demand vs. Limited Supply
As an analyst, I’ve observed that although there’s a possibility of Bitcoin’s price decreasing, other market indicators point to a strong demand for the cryptocurrency. Notably, American spot Bitcoin Exchange-Traded Funds (ETFs) have been consistently purchasing Bitcoin. This trend was brought to my attention by Samson Mow, a prominent figure in the Bitcoin community and a former CSO of Blockstream.
I. Based on Mow’s findings, US-listed ETFs buy approximately 1,626 Bitcoins every day. Furthermore, MicroStrategy makes a daily purchase of around 199 Bitcoins, and Tether acquires about 70 Bitcoins each day.
As a researcher studying the Bitcoin market, I’ve observed a notable increase in the daily demand for this cryptocurrency. This demand becomes even more noteworthy when considering the recent Bitcoin halving in April, which reduced the daily supply of new coins to 450 BTC. Given this context, it seems plausible that demand could outpace the available supply.
As a crypto investor, I’ve noticed a significant imbalance in the market. The total demand for cryptocurrencies appears to be exceeding the available supply by a factor of 5 to 10. This situation could potentially lead to an upward pressure on prices if this trend continues.
Approximately 1,626 Bitcoin are being purchased daily by U.S.-based Exchange-Traded Funds (ETFs). MicroStrategy buys around 199 Bitcoin each day, while Tether Holdings acquires approximately 70 Bitcoin daily.
There are only 450 #Bitcoin mined per day. Total aggregate demand is likely 5-10x supply.
Plan accordingly.
— Samson Mow (@Excellion) May 8, 2024
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2024-05-10 05:10