Crypto expert expects extended Bitcoin correction below $20k before potential rally set to $30k
Bitcoin (BTC) continues to trade below the $20,000 level as the market reacts to the positive US jobs report in August. Amid the correction in BTC’s value, the focus is on the asset’s next price action, with a section of investors suggesting that a bottom has been reached.
Along these lines, crypto trading expert Michaël van de Poppe believes the flagship cryptocurrency is likely to briefly correct further before rallying again in the coming weeks, he said in a YouTube post on September 4.
In particular, Poppe noted that Bitcoin could go as low as $19,300 while the next possible high target is set at around $28,000 or $30,000.
With Bitcoin stuck in the $19,000 and $21,000 range, Poppe noted that the situation could result in “liquidity grabs” below the level. He suggested that to continue a rally, Bitcoin needs to break past $20,400 and target $21,500.
“We’re not going up to $21,600, so that makes me think we’ll drop to new lows or at least break below the $19,300 level, sweep the low and then recovery is a trigger for continuation and then I guess long to see $28,000 to $30,000,” he said.
Bitcoin’s bottom
At the same time, Poppe pointed out that there is a probability that Bitcoin has hit the bottom and is ready for a rally. However, he emphasized that for the target to be reached, Bitcoin must hold the 200-week moving average in market value and stay above $19,000.
Overall, Bitcoin continues to fall in the wake of the prevailing macroeconomic factors. At press time, the asset was trading at $19,800, down nearly 1% in the past 24 hours.
Triggers for Bitcoin’s latest correction
It’s worth noting that Bitcoin briefly rallied in the wake of the payroll data that drove the overall market to regain its $1 trillion market cap. However, the ongoing correction is in line with several analysts’ opinions that the favorable labor market could negatively impact Bitcoin.
Interestingly, Poppe ruled out that the wage data was responsible for the latest correction. He cited the G7 direction to put a cap on Russian oil as a trigger, noting that the crypto market has traded in tandem with stocks.
Furthermore, amid the uncertainty, recent Bitcoin technical analysis indicates that the future remains bleak. As reported by Findbold on September 3, a summary of Bitcoin’s one-day technical analysis pointed to strong selling at 16 while neutral levels were at nine.
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