Analyst Michaël van de Poppe, who is closely followed in the Bitcoin and altcoin world, makes statements about his investment thesis. Addressing over 650 thousand followers on the social media platform X, the analyst also explains important levels. Let’s look at the analyst’s comments.
Analyst’s Bitcoin investment thesis: Planning for future upswings
Analyst Poppe points to a notable crash that wiped out over $1 billion from the markets. Accordingly, with the recent stagnation in prices following the liquidation event, the Bitcoin community is looking forward to the resurgence of volatility. While this is an important week, it is important to carefully analyze two different strategies, investment and trading theses. These will provide insight into navigating the dynamic cryptocurrency landscape.
When is the volatility coming back on #Bitcoin?
Prices have been stalling, after we've been witnessing a significant collapse and liquidation cascade. More than $1 billion has been wiped out of the markets ten days ago.
The largest cascade in this bear cycle. What's next? 👇… pic.twitter.com/Zrjg6O4e0d
— Michaël van de Poppe (@CryptoMichNL) August 28, 2023
According to the analyst, when past cycles and seasonality are examined, it seems that August and September have historically witnessed Bitcoin corrections. However, a forward-looking perspective reveals that the months from October to December generally experience positive trends. The potential approval of Exchange Traded Funds (ETFs) or Futures ETFs on Ethereum adds to the optimism.
Bitcoin trading thesis: Identifying entry points
For Bitcoin traders, the current period is favorable for dollar cost averaging (DCA) and position accumulating. Adopting the weekly or monthly DCA approach will create a balanced stance in the market. Trying to time the bottom of the market is challenging. Therefore, the analyst states that a methodical DCA strategy will put investors in an advantageous position.
Identifying market entry points revolves around understanding liquidity dynamics. The 200-Week Exponential Moving Average (EMA) for Bitcoin serves as a critical reference point. Maintaining levels above this moving average, which is currently at $25,650 or $24,750, is crucial. To avoid falling below the 200-Week EMA, a scenario similar to the 2015-2016 horizontal period can be preferred.
world of predictions
If the 200-Week EMA holds, it means potential market bottom and an attractive entry point. However, a breakout would lead to a key entry zone for Bitcoin at $19,500-21,500. This will mark a final stage of capitulation.
On shorter timeframes, a drop below the 200-Week EMA remains reasonable. Maintaining this level is key. Liquidity density is remarkable around $25,300 to $25,200. According to the analyst, this range is a range that can see stop-loss placements.
Action Strategies
Two strategies emerge, according to analyst Poppe. The first of these is in the form of an aggressive long entry. A potential long entry near $25,750 is appropriate after sweeping and reclaiming this level. A move to the opposite range side is foreseen. On the other hand, according to the analyst, the second strategy is in the form of a return opportunity. Accordingly, a sweep towards $24,700-25,000 with bullish divergences on the higher timeframes will initiate the reversal. Recovering $25,750 in Bitcoin BTC during a bounce is crucial to confirm the latter approach. Strategic implementation is prepared for these scenarios.
Looking at Kriptokin.com, analyst Poppe suggests adopting a dual perspective in investing and trading strategies as Bitcoin’s expected volatility returns. Accordingly, the approach enables participants to make informed decisions. Traders are looking at entry points and liquidity dynamics, while investors adopt DCA during periods of potential accumulation. Accordingly, individuals are navigating the dynamic environment of Bitcoin by combining these strategies. They will also position themselves for potential gains and informed market participation.
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