Bitcoin Needs to Break $23,800 for Bullish Continuation, Says Popular Crypto Analyst
Michaël van de Poppe, a widely-followed crypto trader, has identified a key price zone that Bitcoin (BTC) must break through for bullish continuation. The trader has warned his 650,000 Twitter followers that the $23,800 price zone is a “crucial breaker” for BTC markets to continue moving up. Van de Poppe has stated that Bitcoin needs to break this level for continuation, but currently, the king crypto is hovering just above another important price level.
Van de Poppe has also warned that if BTC continues on its current downward trajectory, it will negatively affect altcoins like Chainlink (LINK). The trader thinks that reclaiming higher levels will activate another rally. Looking at events taking place in the broader markets, such as the potential and unconfirmed Silvergate bankruptcy, Van de Poppe hypothesizes that it may be time for a market squeeze.
Bitcoin and the $23,800 Price Zone
The $23,800 price zone has been a crucial point for Bitcoin since its crash from $38000. It is a level where BTC is currently facing strong resistance after breaking it during its rally in early December. If BTC manages to break through this level, it could provide the necessary momentum for the cryptocurrency to reach higher highs. However, failing to break this level could lead to a downside correction.
Currently, BTC is hovering just above another important price level of $23,200. Van de Poppe has stated that if Bitcoin fails to hold this level, it could test mid-$22,000 levels before moving up. This scenario could affect altcoins like Chainlink negatively.
Chainlink and Bitcoin Relationship
As BTC is the dominant force in the crypto markets, it heavily influences the performance of other cryptocurrencies, including Chainlink. Van de Poppe has warned that if BTC continues its downward momentum, it could lead to a downside correction for Chainlink as well. On the other hand, reclaiming higher levels will activate another rally, anticipating a positive sentiment towards LINK.
Market Squeeze on the Horizon
There has been speculation in the broader markets about a potential market squeeze. Van de Poppe has hypothesized that the potential and unconfirmed Silvergate bankruptcy could be the trigger for such a squeeze. If this scenario plays out, it could lead to people piling into positions, leading to a short squeeze.
A market squeeze is a condition where traders who have taken short positions are made to exit these positions quickly by buying the asset, leading to a sudden increase in prices. This situation could benefit Bitcoin’s price action positively, leading to bullish momentum.
Van de Poppe’s analysis highlights the critical importance of Bitcoin breaking the $23,800 price zone for bullish continuation. While the leading crypto asset is showing some strength, it still needs to break through this level for a major rally. On the other hand, failing to do so could lead to a downward correction towards $22,000 levels.
With events taking place in the broader markets and the potential for a market squeeze, traders need to be cautious and watchful of Bitcoin’s price action. A sudden upward spike could mean that breakout levels have been reached, leading to an increase in investor sentiment. At the same time, a downside correction could mean that traders need to review their positions to avoid losses.
In summary, Bitcoin has been moving cautiously in its fight to reach new highs, and it remains to be seen whether it manages to break crucial levels. However, traders must be alert and watch Bitcoin’s price action closely to make the most of the opportunities available in the market.