Bitcoin’s price action has been a topic of concern for traders and investors worldwide. Expert Michael van de Poppe recently shared his technical analysis of the cryptocurrency, highlighting its potential for a rally amidst the ongoing collapse of the US banking system.
Van de Poppe, a well-known trader, and analyst emphasized the importance of yields falling apart and the potential for the Federal Reserve to pivot or pause its hiking process to open the gates for risk-on assets. He also warned of the systemic issue in the US banking system, with several banks collapsing, including Pac-west Western Alliance and First Republic Bank.
The Technical Analysis of Bitcoin
Van de Poppe noted that Bitcoin has been falling due to fears surrounding stablecoins, but the recent rescue plan by the Federal Reserve has helped stabilize the market. He also mentioned that the technical point for Bitcoin shows a downtrend since its high, with a bearish divergence at $19.7k.
Van de Poppe further stated that Bitcoin’s recent rally towards $23.5k is a crucial resistance point, but ultimately, the chart shows a potential for a continued rally. The optimal long entry for Bitcoin is at 21.3 K, and any move between $22.2K to $22.5K is a proper entry for longing.
The Banking System Collapse in the US
The top analyst emphasized that the US banking system is collapsing, with several banks on the brink of collapse, including Pac-west Western Alliance and First Republic Bank. He noted that the rescue plan by the Federal Reserve is only saving the banks with specific assets in their portfolio, which means that systemic issues are still present.
Van de Poppe also warned of the potential impact on the real estate and debt markets, stating that the shock takes time to manifest. He urged traders and investors to be cautious during this period, as heavy corrections could lead to selling pressure taking over.
Source: https://coinpedia.org/bitcoin/top-expert-says-bitcoin-price-rally-will-continue-despite-u-s-banks-failing/