Bitcoin experienced a significant correction last week and dropped from $28,000 to $25,200. The question on everyone's mind is whether this is the bottom of the correction or whether there will be further declines.
According to Michaël van de Poppe, a prominent cryptocurrency analyst and trader, there are several factors that indicate that the correction may be over and Bitcoin may resume its uptrend soon.
Van de Poppe pointed out that Bitcoin has a periodic and cyclical structure, that is, it tends to repeat similar price movements over time. He compared the current correction with the correction that occurred in the same week of 2018 during the previous market cycle. In both cases, Bitcoin had fallen to the 200-week exponential moving average (EMA), a long-term support level.
He argued that this level could serve as a springboard for a new rally, especially before the next halving event, which is expected to occur in May 2024.
Van de Poppe also talked about some important events and news that could affect the Bitcoin price in the short term. He said he watches economic data from the US, such as unemployment, PMI, CPI and FOMC, which can affect the yield, gold and dollar markets. He stated that Bitcoin has a high correlation with these assets, meaning that it tends to move in the same direction as them.
The US CPI data will be held on September 13, and the FOMC meeting will be held on September 20.
He also highlighted some of the developments in the crypto space, such as the SEC lawsuit with Grayscale, the Bitcoin spot ETF filing, the Ethereum futures ETF filing, and the SEC lawsuit with XRP. He said that these events could have a positive or negative impact on Bitcoin, depending on their consequences. He added that he does not consider it an important factor to watch as Binance expects its regulatory issues to be resolved soon.
*Not investment advice.
