Bitcoin (BTC) and the broader crypto market received a much-needed boost late Thursday after a tumultuous first half of the week. Bitcoin recovered from $36,200 levels on Thursday to $41k levels on Saturday.
A well-known cryptocurrency analyst is scouring the charts to see if Bitcoin’s (BTC) recent surge is sustainable.
Micheal van de Poppe warns his subscribers in a new strategy session that BTC retesting the $40,000 barrier is likely to cause market turmoil.
He starts by saying that it has been a pretty busy day as we approach the weekend. People’s FOMO (fear of missing out) is rising across markets as they feel left out
Bitcoin Price Analysis : Watch out for these levels
Following a modest recovery from $36,000, Bitcoin has been exploding. Another test occurred at $37,000, after which it began to rise. The crypto trader then examines the Bitcoin chart to see where BTC might be headed next.
He said that the question now is whether the market is seeing a fakeout or a long-term trend, as the volume is the largest we’ve seen since the genuine crash.
According to Van de Poppe, Bitcoin will confront $40,700 to $41,500 range on the upside.Because this is the first time we’re testing that level, that is the previous range of support likely to test resistance, he said.
He said that if BTC breaks through it then he expects a test of $44,200, with a move towards $46,000. Many people are expected to sell around the $40,700 level, pushing BTC back towards $38,400.
According to the analyst, the $38,900 mark is critical support if Bitcoin is to continue. He believes BTC might go into the $33,000 to $34,000 level if the line buckles.
If we can consolidate for a bit here and maintain above $39,000, the chances of BTC reaching $44,000 to $46,000 are improving.
Van de Poppe wraps up by outlining two probable outcomes. He is not going to buy into $40,500 the first time we test it after the market has broken down. If btc price flip it, he believe we’ll be at $46,000.
If BTC drops below $39,000 from $40,300, it will be a huge correction, and he expects it to test the lows again.