Michael van de Poppe is one of the most respected crypto traders in that segment of the crypto community and he’s predicting that the consolidation of Bitcoin’s price is about to end, and that we are about to see a big upswing in momentum.
It indeed appears that right now might be the right time to gamble on another Bitcoin bull run. Let’s look at why!
What Three Months of Consolidation Means
In the finance world when most people think about the word consolidation, they think about getting a better rate to pay off their debt. They group it all into one loan. The bank gives them a better rate to try to collect on that debt, and everybody wins. This might be an especially familiar term to gamblers who may not be the best at playing with only what they can afford to lose.
In the investing world however, consolidation refers to something different. It’s when bulls (people who think the market will go up) and bears (people who think the market will go down) can’t seem to find a middle ground.
We can see this phenomenon taking place right now with Bitcoin. The price of one Bitcoin has been hovering between $9,000 USD and $9,500 USD for the last three months straight. All of this after the price dipped all the way down to $3,100 in the middle of March, when the coronavirus pandemic was first grabbing hold of the world.
Consolidation means nobody’s winning the fight, but it doesn’t necessarily guarantee the price is about to go up. Perhaps it’s about to go down. Maybe all of the money that governments are printing off to save people from the effects of the coronavirus pandemic will eventually lead to a collapse. Or maybe Bitcoin will skyrocket because people will look for a safe haven amid all the calamity. So how do we know whether it will be the Bulls or the Bears that when this battle? The answer is we don’t know for sure, but Mr. Van de Poppe has his own reasoning behind a potential upward move.
The Case for a Bitcoin Bull Run
Van de Poppe’s theory is that once Bitcoin’s price cross of the $10,000 mark, it will give investors the confirmation they need to pile in on buying Bitcoin and some the price to levels that we haven’t seen in three years. In case you need a reminder that means that gambling on the Bitcoin price right now could potentially see the price swing above the $20,000 mark. That’s a pretty nice return, especially because it could happen in mere weeks.
What about Other Cryptocurrencies?
Van de Poppe is also predicting that other cryptocurrencies like Ethereum and Ripple will get over their respective slumps. He thinks that Ethereum will more than double in price, which would obviously make investors very happy. That being said, not everybody thinks that the market will go up just because Bitcoin’s price has been in a seesaw battle for the last few months.
Why It May Not Be Time to Take the Gamble
As usual, at no point is every single investor on board with Bitcoin making a bullish move. Those bearish on the project point out that. Most options traders are currently betting that the price will actually go down. If they are right and their options trigger, it could further the downward pressure.
Whether you personally think the price will go up and down as your gamble to take. Just remember that we recommend only investing what you can afford to lose regardless of what the current price of Bitcoin, Ethereum or Ripple is.
