Leading cryptocurrency analyst Michaël van de Poppe predicts several significant market corrections, even as Bitcoin (CRYPTO: BTC) trades near record highs at $98,192.
What Happened: "Bitcoin is going to take liquidity on lower levels," van de Poppe warned on X, forecasting "4-6 flash crashes" before year-end. These corrections could see Bitcoin drop 5-10% in a single day, while alternative cryptocurrencies might experience even steeper declines of 20-30%.
However, van de Poppe suggests these dramatic drops could present strategic entry points for investors. "After such a flash crash on Bitcoin, that's the moment where Bitcoin consolidates, and altcoins shoot off," he explained, describing the market's rotation pattern.
Despite Bitcoin's approach toward $100,000, market sentiment remains notably subdued compared to previous bull runs, suggesting potential volatility ahead as van de Poppe predicts. "Timing those flash crashes is hard, but they do happen," he cautioned, advising investors to prepare for these market movements.
FLASH CRASH! What do you mean?
— Michaël van de Poppe (@CryptoMichNL) November 21, 2024
Well, #Bitcoin is going to take liquidity on lower levels, it will.
There will be crashes of 5-10% on a day.#Altcoins might fall 20-30%, which are the days you should activate your entries.
However, after such a flash crash on Bitcoin, that's... pic.twitter.com/DTbIcs4Kob
Why It Matters: The warning comes amid a broader cryptocurrency market surge, with total market capitalization reaching $3.3 trillion. Major institutions continue showing confidence in the sector, exemplified by MicroStrategy Inc.'s (NASDAQ:MSTR) recent $3 billion convertible note offering to acquire additional Bitcoin.
Supporting van de Poppe's market rotation theory, other analysts including Milkybull project an upcoming "altseason" extending through March 2025. Technical indicators suggest alternative cryptocurrencies could see significant gains following Bitcoin's correction periods.
Ethereum (CRYPTO: ETH) is trading at $3,324, up 7.71%, in the last 24 hours, while Solana (CRYPTO: SOL) reached $254.05, gaining 6.79%.
Bitcoin is currently trading at $98,407, up 3.65% in the last 24 hours.
- November Small-Cap Surge Could Carry Into December's Santa Rally, Historical Trends Suggest
Image Via Pixabay
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
