Yerevan (CoinChapter.com) – Bitcoin (BTC) experienced its steepest drop in the last two weeks and traded at $31.666 ahead of Tuesday’s New York session. Michael Van de Poppe, an Amsterdam-based crypto analyst, and YouTuber posted his predictions on the alpha crypto.
Will Bitcoin Bounce Back?
In his video, the analyst discussed the significant support levels for Bitcoin and the possible scenarios if the token hit or miss the set targets. Mr. Van de Poppe had earlier suggested that 34K margin was significant for BTC to hold. However, if the coin would lose the 34K support, which already happened, he had a different outlook prepared.
He discussed the details on the BTC/USDT (Tether USD stablecoin) chart, presented below.
In the analyst’s estimation, the 29,500 – 32,500 USDT price margin (upper green bar on the chart) is the next viable support bar for Bitcoin at this point. He mentioned that’s the level that helped BTC escalate in February 2021.
Mr. Van de Poppe points out that should the token fail to hold on to it and bounce back, the next lifeline is the 23.9K margin. After that, however, the analyst sees a potential bullish divergence in the Relative Strength Index (RSI).
In hindsight, RSI divergence happens when the index drops below 30, followed by a higher low that matches lower lows in the price. That’s when traders consider the coin oversold and buy the dip, expecting a trend reversal and subsequent gains. Thus, bullish RSI divergence is a strong bullish indicator.
Given the two major support margins ahead, the analyst believes Bitcoin will recover and regain bullish momentum.
While Mr. Van de Poppe is positive on Bitcoin restoring to at least 36-38K in the upcoming sessions, other experts disagree. For example, Scott Minerd, chief information officer of Guggenheim Partners, a financial services company, is convinced that BTC faces a high probability of revisiting the $20,000 level.
When we get a risk-off moment, we could be seeing Bitcoin pull back to somewhere between $20,000 and $30,000.He mentioned back in April 2021.
Peter L Brandt, a veteran trader and investor, saw Bitcoin at 21K in his worst-case scenario.
As both bullish and bearish outcomes are possible, traders should keep a cool head while deciding the faith of their assets. In his video, Mr. Van de Poppe suggests that Ethereum and altcoins, in general, are a safer choice at the moment. This is because they declined less than Bitcoin and could avoid devastating losses in the coming sessions.
Moreover, bulls in the crypto market are accumulating BTC, hoping for gains. One of them is MicroStrategy business intelligence company and a renowned Bitcoin supporter.
Another outspoken Bitcoin supporter is Anthony Pompliano, an entrepreneur and a crypto investor. He tweeted about Bitcoin’s fall from grace with the US government and stated that “digital currency [is] an inevitability.”
Will Bitcoin hit $20,000? While it is a possibility, experts have opposing views on the matter, using different fundamentals to back their opinion. The upcoming trading sessions will be crucial for not only Bitcoin, but the crypto market as a whole.