Top analysts expect Bitcoin price to correct 40% before rising to $150,000. Here’s why:
Bitcoin (BTC), the largest cryptocurrency, recently showed an upward trend, surpassing the $52,000 level. This has sparked a bullish outlook, with growing optimism about Bitcoin surging to $100,000. On the other hand, analysts have suggested a long-term target of $150,000, but the Bitcoin price is expected to undergo a correction of up to 40% before then.
Analysts accept a 40% correction in Bitcoin price.
Prominent cryptocurrency analyst Michael van de Poppe has made a bold prediction about the price trajectory of Bitcoin, predicting a bounce to $150,000 ahead of a major decline. In a recent analysis, Poppe highlighted a possible 40% correction before BTC price resumes its upward trajectory.
According to Poppe, market sentiment often exceeds reality and leads to exaggerated price movements. He said, “Emotions are always the wrong indicator. People start losing money because emotions always trump reality and emotions outpace price movements by a mile.” The volatility of this sentiment has been evident in recent market movements, including Bitcoin’s $50,000 surge and subsequent correction.
Poppe also warned traders and investors to adopt a strategic game plan based on their risk tolerance and investment horizon. He advised short-term traders to be cautious, especially when prices surge. “If your horizon is relatively short, buying an asset that is up 35% in 10 days may not be +EV,” he said. He also emphasized the importance of assessing risk-reward ratio before making trading decisions.
This decline is expected to occur after Bitcoin price peaked between $53,000 and $58,000. In contrast, Poppe suggested that long-term investors may benefit from waiting for the standard 20% to 40% correction before entering the market. “If you suspect that Bitcoin will be above $150,000 two or three years from now, there is no big problem in starting to scale down to that price,” he said. This approach allows investors to take advantage of market downturns and manage their emotions effectively.
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How Macroeconomic Factors Affect Bitcoin
Poppe also discussed the impact of macroeconomic events on Bitcoin price movements, citing factors such as Consumer Price Index (CPI) data. He warned that negative macroeconomic developments could trigger a sharp decline in the price of Bitcoin. “Honestly, I think that means that as soon as the macroeconomic situation turns slightly negative, there will be a correction,” he said.
Additionally, hot January Producer Price Index (PPI) data caused extreme volatility in the market, compounding the impact of the January CPI report. Despite the potential for near-term volatility, Van de Poppe expressed confidence in Bitcoin’s long-term prospects, predicting it will rise to $150,000. Meanwhile, other analysts have expressed an optimistic outlook for the Bitcoin price, suggesting a $100,000 target.
At press time, BTC price was down 0.86% to $51,516.41 on Sunday, February 18th. Its market capitalization boasted $1.1 trillion. On the other hand, 24-hour trading volume decreased by 12.65% to $21.72 billion. The recent decline in Bitcoin price can be attributed to the negative PPI report released on Friday.
Also Read: Breaking News: Spot Bitcoin ETF hits $5 billion with net inflows of $323.9 million.
The Post’s top analyst expects Bitcoin price to correct 40% before rising to $150,000. Here’s why: Originally appeared on CoinGape
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