Crypto trader Michaël van de Poppe says that the current war in Eastern Europe could drive crypto stalwarts Bitcoin (BTC) and Ethereum (ETH) to new lows.
In a new video, the analyst tells his 165,000 YouTube subscribers that the conflict between Ukraine and Russia is causing economic uncertainties impacting indices, inflation rates as well as the prices of gold and Bitcoin.
[adinserter block="1"]“At this stage, we are seeing that Bitcoin is dropping down significantly and why is that? That’s because of short-term panic. You must understand that traders are short-term based people, very impulsive, emotional and that is what the markets are reflecting…”
Van de Poppe says that the current downturn is creating a gap between Bitcoin’s price and its value, which could be an opportunity for those still bullish on the top cryptocurrency. However, he says BTC could still make a new lower low at around $30,000.
“The reason why Bitcoin is dropping down right now is because of the horizon that is going to slim or getting smaller or shorter time frame through which people are opting out of those assets and flying towards the US dollar or towards gold as we have been seeing and because of that, the valuation of Bitcoin is dropping down and because of that, we can see that the gap between the fundamental growth and the price in itself is getting larger and larger, which creates heavy opportunities…
…If we drop down some more and if we lose this entire region between $38,000 to $39,500, we’re definitely going to take the liquidity beneath the low. That’s where you want to see the reversal. That’s when you get higher timeframe bullish divergence, and that’s when you get the reversal taking place overall. Right now, the markets are correcting some more.”
Van de Poppe says that altcoins, led by Ethereum, also have heavy sell-side pressure that could push them down further, potentially until ETH hits the $2,000 mark.
“If we’re looking at altcoins too, we can clearly see that altcoins have no interest in going up. They are actually grinding down some more…
There is so much uncertainty about the markets resulting into altcoins selling off, especially when you’re looking at Ethereum, we can conclude that we’ve been making another lower high.
We have just been stating a possible view on Bitcoin in which we are taking the lows before we’re going to reverse. Those chances are going to increase when you look at Ethereum. I think that we’re going to test these lows, potentially even $2,000, if we are not reclaiming any level.”
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