Widely followed analyst and trader Michaël van de Poppe believes there are four catalysts that could revive the crypto bull market after this week’s broad sell-off.
Van de Poppe tells his 721,400 followers on the social media platform X that if there are significant inflows into both spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) during the next few weeks, it could spark a crypto rally.
“If ETH, especially ETH, starts to become positive, that would be the ideal trigger for the markets to surge.”
He also believes that worsening macroeconomic conditions could cause gold to soar and the US dollar to weaken, which he believes would trigger rallies for risk assets like Bitcoin.
“Continued unrest on the markets, leading to gold to break to new highs and the dollar and [U.S Treasury] yields to fall. That would be a trigger for the markets to rally.”
Next up, the analyst says another bullish market catalyst could be if crypto assets reclaim key support levels, including ETH against Bitcoin (ETH/BTC).
“Reclaims of certain levels, for instance, ETH to hold above 0.044-0.045 BTC and reverse back up.”
ETH/BTC is trading for 0.0449 BTC ($2,506) at time of writing.
Lastly, the analyst says markets may respond positively to an announcement of a settlement agreement in the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple.
Ripple Labs chief executive officer Brad Garlinghouse reportedly said,
“We expect resolution very soon, but can’t predict when the judge will rule there.”
The SEC sued the San Francisco-based payments firm in late 2020 for allegedly selling XRP as an unregistered security. A judge ruled that Ripple’s automated, open-market sales of XRP did not constitute security offerings, but did side with the SEC’s claim that Ripple’s sales of XRP directly to institutional buyers were securities offerings.
The analyst also highlights that one reason to be optimistic amid the crypto market correction is that digital assets may find a bottom at their high timeframe support levels.
“I think that this capitulation is heavy, but is, given TA (technical analysis), close to their HTF (high timeframe) support levels and the heaviest panic we could have.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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