Market Sentiment: Not Always Reliable
Crypto analyst Michaël van de Poppe warns that market sentiment can be misleading. He cites examples where sentiment predicted a new all-time high for Bitcoin, but it didn’t happen. Conversely, when sentiment was negative and the price dropped to $39,000, it eventually recovered.
Current Market Trends
The current surge in interest in Bitcoin has created a positive sentiment. However, van de Poppe cautions that emotions often overshoot reality, leading to potential losses.
Potential Correction
Van de Poppe advises investors to prepare for a market correction. He cites macroeconomic events such as higher CPI and decreased inflows as potential triggers.
Correction Depth
Based on current data, van de Poppe estimates that the correction could be as deep as 20-40%. He warns that the correction could be swift due to the current positive sentiment.
