Short-Term Correction and Potential Upside
Cryptocurrency analyst Michaël van de Poppe has shared his market expectations following Bitcoin's recent decline, assessing potential price action ahead of the FOMC meeting. According to van de Poppe, a short-term correction could pave the way for a confirmation of the ongoing uptrend.
The analyst stated that Bitcoin could experience a correction that would sweep away the lows observed at the beginning of the week or before the FOMC meeting. He suggested that a test of the $87,000 level is a possibility within this correction phase.
In this projected scenario, Van de Poppe articulated that if Bitcoin rebounds rapidly after the decline, it will re-enter an uptrend. He expressed his expectation of a rally to $100,000 within one to two weeks, contingent on breaking the $92,000 resistance level. He further noted that several macro factors are anticipated to support this rise, including the Federal Reserve's reduction of balance sheet contraction, preparations for interest rate cuts, and an overall increase in liquidity.
Critical Invalidity Points for the Bullish Scenario
According to the analyst, the bullish scenario has two critical points that could invalidate it:
- •Losing the $86,000 support level could push the price down into the $80,000 range.
- •A failure to break and hold above the $92,000 resistance level could invalidate the bullish outlook and increase the risk of a further decline.
Van de Poppe observed that Bitcoin has already swept through the mentioned area slightly earlier than anticipated, suggesting that the chart outlook remains positive. He indicated that a test of $92,000 in the coming days would strengthen the price's chances of reaching $100,000 and could generate significant momentum in the altcoin market.
Bearish Scenario Considerations
Conversely, in a bearish scenario, if weekend volatility persists and Bitcoin closes below $86,000, this could lead to a new test of the $78,000 to $80,000 price region.