A widely followed crypto analyst is expecting the current stress test on the digital assets market will be better for crypto in the long run.
Crypto analyst Michaël van de Poppe tells his 651,000 Twitter followers that the crypto markets are breaking and will likely drop before the quarter’s end (QE).
“The markets are breaking, which means that the entire saga around a pivot or pause of the FED policy is going to be taken a fast U-turn.
Two-year yields have been falling from 5% to 4.75% already as an anticipation.
In the meantime; assets will probably drop before QE.”
Despite his prediction, the trader says there is a major silver lining to crypto’s current shakeup.
“Ultimately, crypto and Bitcoin are enduring a stress test with all the negative news kicking in.
However, from here, crypto will only be adopted even more as people will start to hate governments and banks.
Looking at king crypto Bitcoin (BTC) specifically, the trader names a few price points that he’d be interested in trading BTC at.
“Levels I’d be looking at with Bitcoin:
– Potential shorts around $20,600 and/or $21,400.
– Potential longs at $18,100-18,600 including bull. divs and/or HL confirmation.”
Bitcoin is trading for $19,964 at time of writing.
Van de Poppe also analyzes the Ethereum (ETH)-based blockchain oracle Chainlink (LINK). Based on the trader’s chart, he expects LINK to fall a bit more before rebounding.
“Any long I’d like to play at this point for Chainlink has to do with bullish divergences on 4h timeframe before activated.
Constant bearish retests and, my long as well, stops being hit on long side.
Range low seems relatively normal including bull divs.”
LINK is worth $6.17 at time of writing.