Famous bitcoin dealer and analyst Michael van de Poppe recently turned to Twitter to address customer concerns and explain the current quiet status of the cryptocurrency market. He explored the historical background of Bitcoin’s cycles and offered his perspective on the current bear market in his perceptive tweet.
Van de Poppe reminded his readers that the leading cryptocurrency, Bitcoin (BTC), has gone through a series of cycles that have been marked by periods of growth, crucial corrections, accumulation, and resumed growth. But the analyst is well aware that the magnitude and depth of these cycles vary.
According to the analyst, the 2015 market is being honoured by the present bad market. He emphasised that despite the technology’s great fundamental advancement, this was a period of protracted sideways movement that damaged the faith of certain customers in the technology.
He discovered that the current value of Bitcoin is significantly lower than the peak it attained in November 2021 by drawing comparisons between the two time periods. That came after the market leader’s value fell by more than 50% and it immediately entered a bear market that lasted 490 days. Van de Poppe said that compared to BTC, altcoins and NFTs faced considerably steeper drops.
Van de Poppe discussed his personal experiences from prior market cycles, as well as the severe bear cycle of 2018-2019, the COVID-induced crash, and the ongoing bear market, acknowledging the mental agony many buyers are dealing with. He claimed that these emotional experiences offer valuable lessons that can be applied to subsequent cycles.
Recent developments like the increased acceptance of Bitcoin by institutions and governments may portend positive futures for the cryptocurrency. Van de Poppe countered, however, that prices don’t always reflect these events.
He gave several instances, including Blackrock’s investment in mining companies, the establishment of several ETFs for Bitcoin and Ethereum, the introduction of an ETF in Europe, and Hong Kong’s acceptance of cryptocurrencies. He noted that the market’s pervasive bearish attitude, which he refers to as the “bear market modus,” has obscured these developments.
Van de Poppe introduced the concept of “time capitulation” to address the protracted period of immobility that distinguishes bear markets. He advised that although this phase of the cycle tests the customers’ perseverance and willpower, it is an important one.
Furthermore, he anticipated that the market would eventually move past this stage in the upcoming months, creating the optimum conditions for a new phase of growth and acceleration. In light of these realizations, van de Poppe advises clients to maintain composure, consider the causes of their emotional suffering, and draw lessons from their past experiences.
According to CoinMarketCap at the time of writing, the total market capitalization had decreased 0.40% over the previous 24 hours. As a result, it was calculated that the total market value of cryptocurrencies was $1.05 trillion.
BTC was fluctuating fingers under $26,000 at that time, at $25,942.37. After the primary cryptocurrency had recorded a 24-hour loss of 0.33%. This poor daily performance further lowered BTC‘s weekly performance, which fell by 0.55%, and farther into the red zone.
The fact that a large bearish technical flag was activated during the course of the preceding 48 hours on BTC’s day-to-day chart should be taken into consideration by buyers and merchants. The 20-day EMA line deviated from the 200-day EMA line throughout this time period. This suggests that the medium-term momentum has turned in favour of sellers, which could result in a decline in the price of BTC during the next several days.
If this bearish technical flag is confirmed, BTC may try to retest the following crucial support level at $24,200 during the course of the ensuing week. If Bitcoin closes a day-by-day candle over $26,915, this bearish thesis will probably be proven false. In this scenario, the market leader’s worth could increase to $30,070 within the upcoming two weeks.
