Cryptocurrency analyst Michaël van de Poppe is telling traders to be cautious, warning Bitcoin’s price is still vulnerable to downward pressure.
In a new strategy session, the analyst says that the severity of the correction and the timing suggests that the flagship cryptocurrency could plummet in price further.
“Are we done yet? I do not assume that we’re done yet because we can just have very corrective moves. Historically, March is not the best period for crypto in general or markets. So I do not believe that we are done. Especially after such a harsh drop down as on lower time frames the construction is bearish right now, while on higher time frames you are still doing fine.”
Van de Poppe says BTC is currently facing a clear zone of resistance between the $50,000 to $52,000 level, causing some buyers to rush in struck by the fear of missing out.
“There are some points of resistance which it’s facing. The first one right now, which is this entire block, and currently some people will probably already think that it’s over with the correction and are FOMO-ing in back into the markets.”
Despite Bitcoin’s vulnerability in the short term, the analyst adds that there’s ‘no need to panic’ even if Bitcoin’s price falls below $35,000.
“The market structure is still fine. Even if Bitcoin drops to $35k, the market structure is still fine as we are still making higher lows [and] higher highs. So it’s very natural to have a corrective move.
Usually those corrections are quite harsh and markets move or crawl upwards and then the corrections are just a very fast-paced drop down as that’s just because of liquidations etc. But there’s no need to panic and you should actually be using those dips to accumulate a bigger position…”
Van de Poppe expects altcoins will trade in a range for most of the next month before beginning to rally as April approaches.
“…what’s next for March I think we can have some sideways, boring period. Maybe some altcoins going left and right as some have been doing well… Kusama (KSM), Serum (SRM), Solana (SOL), they have been doing well. But the real altcoin summer should be happening at the end stage of March and then crawling up towards the summer where everything is going to run.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Kirk Wester