Top crypto strategist and trader Michaël van de Poppe is warning bullish crypto enthusiasts that Bitcoin and the broader crypto market is not yet ready for that big breakout.
Van de Poppe believes Bitcoin’s recent ascent to $12,000 is most likely a bull trap.
“The $12,000 area is a crucial barrier we have to break through in order to continue this upwards movement. However, I’m not convinced we are going to do that at this point yet given that we are approaching the resistance area, which is between $11,900 and $12,500 through no volume. So this whole upwards move is actually fueled by people that are selling their altcoins to jump on the BTC bandwagon.”
The crypto analyst believes that Bitcoin will continue to consolidate as it respects the bear stronghold of $12,000.
“I’m expecting a rejection between the area of $11,800 to $12,050. Afterwhich, we rejected $11,800 and get some further downwards momentum going through which we can see some more range-bound movements. Are we going down further? I’m not sure but I think we should be able to test the $10,600 area.”
As for Ethereum, Van de Poppe believes that the leading smart contract platform is not yet out of the woods.
“Based on the daily timeframe, ETH/USDT, we can see that we’ve got a significant resistance zone, which is around $380 towards $395, which does not look like we’re going to see a breakthrough of that level at this point. We’re just consolidating.
If we do break this $380 to $395 level, I think we’re going to test $440, but based on a weekly timeframe, we could also say that we’ve got a rising wedge construction here through which a retest of these lower zones (around $340) would not be unlikely and very healthy for a market.”
The crypto trader is also bearish on XRP. According to Van de Poppe’s chart, Ripple’s native token can potentially lose over 16% of its value as it is poised to drop from $0.24 to $0.20.
“This one, and in general the markets, is showing a further retrace to come. In that case, if this construction breaks south, I’d be interested to look around $0.195-0.205 for longs at first.”
Source: Michaël van de Poppe/Twitter
Although Van de Poppe is short-term bearish on BTC, a number of analysts believe BTC is ready to break through $12,000 and beyond.
The popular pseudonymous trader The Crypto Dog recently said he thinks BTC is on the cusp of a massive parabolic upwards rally.
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