Bitcoin Bottom Out? Analyst Signal Turnaround Amid Market Slump
Bitcoin has recently concluded April, marking its most significant monthly decline. Despite the bearish momentum, leading market analysts, including Michael van de Poppe, believe that the worst may soon be over, suggesting that Bitcoin is nearing the end of its current correction phase.
Bitcoin At The End Of Correction?
April was challenging for Bitcoin, as its value plunged nearly 20%, dipping below $57,000, the lowest level traded since late February.
This drop is part of an intense market sell-off that has slashed the combined cryptocurrency market cap by nearly 10%, bringing it down to $2.2 trillion. Amid these declines, Michael van de Poppe, a revered figure in the crypto analysis space, provided hope.
In his recent statements on the social platform X, Van de Poppe suggested that Bitcoins current price levels might be nearing the bottom of this correction cycle.
He highlighted the critical price range of $56,000 to $58,000 as pivotal for Bitcoins short-term trajectory, indicating potential areas for a rebound.
#Bitcoin is at the end of the correction.
Its already down 20% from the highs and well have some more downside to happen from here.
If the correction continues, then I think the green zones between $56-58K are essential to watch.#Altcoins to bounce before. pic.twitter.com/4Mu3NA1HSg
Michaël van de Poppe (@CryptoMichNL) May 1, 2024
A Closer Look At Predictions And Market Sentiments
Van de Poppe isnt alone in his optimistic outlook. Other analysts, like Checkmate, an on-chain expert, have analyzed Bitcoins historical data to predict future movements.
Checkmate introduced the term chopsolidation, describing it as a phase of stagnant yet volatile market conditions that could precede a significant bullish run.
He expects this phase to last about six months, followed by a potential 6 to 12 months of explosive growth reminiscent of past cycles. Furthermore, historical data from Bitcoins Halving years support the theory that after a halving event, the market tends to perform strongly towards the end of the year.
However, there are not all optimistic forecasts in the crypto realm. The spot Bitcoin ETF market witnessed over $300 million in net outflows in April, breaking a three-month streak of inflows, reflecting a broader sentiment of caution among investors.
Moreover, Charles Edwards, founder of Capriole Investments, has voiced concerns over the markets extraordinary bullishness, warning of the necessity for corrections within such a volatile asset class.
Sell in May and go away. This looks like distribution to me. As long as we trade below $61.5K, scenario (1) is technically more likely. A strong reclaim of $61.5K would give some hopes to the bulls for scenario (2). A flush would also be good for the sustaining continuation of pic.twitter.com/6E3oJ1vgs3
Charles Edwards (@caprioleio) May 1, 2024
Featured image from Unsplash, Chart from TradingView
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Source: NewsBTC.com
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