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- Michaël van de Poppe believes Bitcoin’s current rally took many investors by surprise.
- Several traders expected Bitcoin to drop further after crypto challenges of Q4 2022.
- Poppe advised traders to focus on altcoins that are yet to join the current rally.
The famous Bitcoin trader Michaël van de Poppe has advised cryptocurrency investors on what to watch out for before taking new positions. In his latest YouTube video, Poppe noted that the current rally took many traders by surprise, making them desperate to get into the market.
#Bitcoin correcting, but how deep can we go? When should you actually start buying #altcoins?A fresh update is here:https://t.co/QZXAA3Xw2z pic.twitter.com/CVnOahjBHF
— Michaël van de Poppe (@CryptoMichNL) February 8, 2023
Bitcoin embarked on a steep rally from the beginning of 2023. The market sustained this rally until the end of January, after which a consolidation began. According to Poppe, many investors pulled out of the market just before the rally. They panicked over the possibility of prices sinking further after the challenges the cryptocurrency industry faced in Q4 2022. Interest rate hikes by the U.S. Federal Reserve also played a part in instilling fear into traders.
Based on that perspective, most traders continued to short Bitcoin, expecting a pullback at the initial stages of the rally.
Poppe identified the impending interest rate policy reversal as the main reason for the Bitcoin market reversal and the sustenance of the trend. He noted that the current pullback and price behavior around the $23,000 level is only preparing Bitcoin for a further upward movement. From his analysis, dropping toward the $21,000 region could present ideal entries for buyers, even though he does not expect that to happen.
On the flip side, Poppe thinks that Bitcoin’s price has already factored in the effect of the Fed’s policy change. In his opinion, this provides another window of about two months for traders to explore the opportunities provided by the rally.
Poppe warned traders not to be carried away with the upward movement and assume that the bull market has finally kicked in. He advised traders to be watchful, especially toward the latter part of the year, when there would likely be a recession. Therefore, his target is to take advantage of the window provided by the policy change. He expects Bitcoin price to keep rising until the $37,000 to $40,000 region.
For those who do not have any positions yet in the rally, Poppe thinks this is the proper time to adopt a DCA (Dollar Cost Averaging) approach ahead of Q2 2023 when the upward push begins.
Concerning altcoins, he advised traders to focus on those that are yet to join the rally. Otherwise, adopt an intraday approach to avoid being wrecked by those altcoins whose rallies they have already fulfilled.
The post Bitcoin Will Keep Rising Until the $37K to $40K Region: Analyst appeared first on Coin Edition.