Bitcoin’s recent price rally, breaking past the $52,000 mark, has garnered significant attention from investors and analysts alike. However, amidst the optimism, some market experts predict a potential short-term correction. Renowned analyst Michaël van de Poppe has shared insights that suggest Bitcoin could be on the brink of a temporary pullback before resuming its upward trajectory.

Bitcoin Potential Short-Term Pullback

According to Michaël van de Poppe, despite the strong momentum Bitcoin has shown, a short-term correction is anticipated. He predicts that Bitcoin’s price could dip to around $48,600 before making another attempt to climb higher. This forecast is based on his analysis of the cryptocurrency’s recent price actions and market trends. The expectation of a pullback comes after a low bearish activity, which is unusual for Bitcoin’s volatile market movements.

The #Bitcoin chart looks great as the momentum is massive.

I’m expecting a short-term correction before a final push to $54-58K and then we’re likely done with this current pre-halving run. pic.twitter.com/sq9GWn0N8M

— Michaël van de Poppe (@CryptoMichNL) February 19, 2024

Van de Poppe’s analysis points to a potential rebound following the correction, with BTC’s price possibly reaching between $54,000 and $58,000. However, he also suggests that this upward movement could signify a short-term top for BTC, especially as it approaches its pre-halving run. This period is crucial for Bitcoin, as historical data shows significant price movements leading up to and following its halving events.

Market Sentiment and Future Projections

Despite the forecasted short-term correction, the overall market sentiment towards BTC remains positive. The recent approval of spot Bitcoin ETFs in the United States and the resultant increase in demand have contributed to BTC’s price recovery from its mid-January lows. Additionally, the launch of BTC ETFs has led to a significant inflow of funds into the cryptocurrency, with over $5 billion worth of BTC being acquired since January.

Open interest for Bitcoin futures on centralized exchanges has also reached a new 27-month high, indicating a heightened level of market activity and trader interest. This open interest and trading volume surge suggests that investors are actively engaging with Bitcoin, potentially buffering against any significant long-term price declines.

Read Also: Bitcoin and Ethereum Set Record With $2.45 Billion Inflow

The post Is a Short-Term Correction Looming for Bitcoin’s Price? appeared first on CoinGape.

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Filed under: News - @ February 19, 2024 4:25 pm