Table of Contents
Crypto Market Analysis with Michaël van de Poppe
In this deep-dive analysis, we will be examining bitcoin’s recent price action with a focus on the trends in long-term holder supply and funding supply. Michaël van de Poppe, founder and CEO of the trading platform Eight, will also share some chart analysis of the recent pull back.
Importance of Price Action in Successful Investing and Trading
Fundamentals analysis is important but not sufficient when it comes to successful investing and trading. Investors and traders need to understand what price action is saying. Fundamentals analysis gives a broad understanding of an asset’s value proposition, while price action analysis provides a detailed picture of the asset’s trading patterns and its future movements.
Best-in-Class Technical Analysts
To understand what macro and crypto markets are doing and how they are influencing each other, we need the insights of best-in-class technical analysts. In this article, we will be focusing on Michaël van de Poppe’s analysis of the bitcoin market.
Bitcoin’s Recent Price Action
Bitcoin’s price has been on a rollercoaster ride lately, experiencing sharp fluctuations in both directions. In January 2023, bitcoin reached an all-time high of $200,000 before plummeting to $150,000 in a matter of days. Since then, the crypto asset has been trading in a range between $150,000 and $180,000.
Long-Term Holder Supply
One of the most important factors affecting bitcoin’s price in recent months has been the trend in long-term holder supply. Long-term holders are investors who have held bitcoin for more than a year. These investors are less likely to sell their bitcoin when the market turns bearish, and they can provide a strong support level for the price.
According to Michaël van de Poppe’s analysis, the long-term holder supply has been decreasing since October 2022. This trend indicates that long-term holders are starting to realize their profits and take some money off the table. This selling pressure can put downward pressure on the price, especially when the market is already weak.
Funding Supply
Another important factor affecting bitcoin’s price is the trend in funding supply. Funding supply refers to the amount of money available to traders who want to go long or short on bitcoin using derivatives products like perpetual swaps.
According to Van de Poppe, the funding supply has been increasing since February 2023. This trend indicates that traders have been taking more leveraged positions in the market. When the market turns bearish, these traders may be forced to sell their positions to cover their losses, creating additional selling pressure.
Chart Analysis
In addition to analyzing the trends in long-term holder supply and funding supply, Van de Poppe has also looked at the charts to identify key levels to watch in the bitcoin market.
According to his analysis, the key support level to watch is $150,000. If bitcoin falls below this level, it could lead to a sharp decline to $120,000 or even $100,000.
On the other hand, if bitcoin can break above the resistance level at $180,000, it could signal a new bullish trend and lead to a rally to $220,000 or even $250,000.
Conclusion
Overall, Michaël van de Poppe’s analysis suggests that the bitcoin market is currently in a fragile state, with downward pressure from long-term holders and leveraged traders. Investors and traders should watch the key support and resistance levels closely to avoid getting caught on the wrong side of the trend.
For more insights from Michaël van de Poppe and other best-in-class technical analysts, please visit https://cryptofuels.com/.