Michaël van de Poppe Sees Possible Bitcoin Correction of 40%

Bitcoin’s recent price surge, which saw its value surpass $50,000 and climb to $53,000 before falling again, has surprised many in the market, including Michaël van de Poppe. Van de Poppe, a well-known Dutch crypto analyst and market expert, told X about a significant correction. He expects that such a correction could be up to 40%.

Van de Poppe’s bitcoin analysis

Market sentiment often plays a crucial role in the price of bitcoin, although it can sometimes mislead investors. Van de Poppe has emphasized this in his analyses. Through his analytics on X (formerly known as Twitter), he emphasizes the importance of looking at more than just sentiment to make informed decisions.

Van de Poppe gives examples to illustrate the pitfalls of a strict focus on market sentiment. A notable example is the reaction to the approval of Spot Bitcoin ETFs, which led many to anticipate a new all-time high for bitcoin. Despite these expectations, price growth remained below previous records. According to Van de Poppe, this shows how market strength is often already reflected in prices, and sentiment can exaggerate outcomes based on emotional reactions.

Another example Van de Poppe cites is the price drop from $49,000 to $39,000, driven by outflows from the Grayscale Bitcoin Trust (GBTC). The market initially expected these outflows to continue, but they eventually subsided, allowing the price of bitcoin to recover. This scenario further highlights how sentiment can diverge from actual market dynamics.

#Bitcoin rallies to $50,000 and higher, are we going to see $100,000 in the next few months?

The ultimate question is what the price of Bitcoin is going to do in the upcoming period.

The inflow has netted more than $2 billion in a week.

What can we expect with Bitcoin? 👇…

— Michaël van de Poppe (@CryptoMichNL) February 16, 2024

Price correction for bitcoin?

The current market trend, characterized by high interest in bitcoin, has led to optimistic sentiment among investors. However, Van de Poppe warns that emotions can far exceed the reality of the market, potentially leading to financial losses as sentiment overtakes actual price movements.

Given the recent sharp rally in the price of bitcoin, Van de Poppe advises investors to enter the market with a well-thought-out plan. He points to the likelihood of a market correction triggered by changes in macroeconomic factors, such as a recent increase in the Consumer Price Index (CPI) and a possible reduction in investment inflows.

Van de Poppe says a correction is inevitable, especially with current market sentiment. He expects the market could peak between $53,000 and $58,000 before experiencing a 20% to 40% correction.