Popular crypto analyst Michaël van de Poppe says Bitcoin (BTC) is bouncing between rallies and corrections in part due to the strength of the dollar.
In a new YouTube update, Van de Poppe tells his 165,000 subscribers why Bitcoin is correcting after a heavy bounce from recent lows.
“We had a beautiful bounce from mid-$32k… towards $39k, or close to $39k, and we’ve reversed that trend today. Why are we actually bouncing?
The dollar has been showing some weakness after it has been searching heavily. Because of that weakness, the markets that were risk-on… Bitcoin, for instance, has shown some strength up-wise. However, during the entire run of Bitcoin, we’ve been seeing not too much strength as Bitcoin has been fading down with the volume, not indicating that we were actually having a very strong push-up anymore.
So, that resulted in this correction today.”
The analyst illustrates Bitcoin’s recent price fluctuations on Twitter with a chart highlighting the low-$37,000 region as the target for BTC’s next bounce.
“And that’s not a breakthrough for Bitcoin, so correction takes place.
Green zone first potential bounce possibility.
Overall remaining cautious.”
However, if BTC fails to hold near $37,000, the analyst predicts a possible 8% drop.
“If Bitcoin loses this level at $37Kish, I think it will start to drop fast towards the lower bound of the region around $34-35K.”
Looking to the future, Van de Poppe recommends Bitcoin traders remain calm and cautious for the time being.
“So, what is most likely going to happen right now? I think you should be relatively calm. Look for coins that can have some staking. Start accumulating, slowly, [since] the entire range is still a big chance.
Look at the dollar – what is going to happen there?
And just play it slow.”
Van de Poppe expects Bitcoin to make major, though unspecified, gains in the near future, wherever the leading crypto by market cap finds support.
“Anything like this would make sense for Bitcoin.”
Bitcoin is trading for $36,756 at time of writing, down nearly 2% on the day.
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Source: https://dailyhodl.com/2022/02/03/heres-why-bitcoin-btc-is-bouncing-according-to-crypto-analyst-michael-van-de-poppe/