Michael van de Poppe, a senior crypto strategist and trader, is also watching Cardano’s (ADA) price action closely, as he predicts a supply shock for Bitcoin is imminent.
Van de Poppe, with 404,100 Twitter followers; He shared his predictions that Cardano is slightly correcting against Bitcoin (ADA/BTC) to pave the way for its next rise.
“We anticipate Cardano will continue here. Bitcoin/Cardano pair is doing well.”
According to Van de Poppe’s chart, Cardano needs to consolidate at the support level of 0.000045 BTC, which is worth $2.06 at the time of writing, before continuing its uptrend.
As for Bitcoin (BTC), the popular crypto analyst said before the leading crypto asset ignited a rally near the $50,000 resistance; he thinks he is ready to experience a dip on lower timeframes.
“Bitcoin is preparing for an uptrend while consolidating at the support point. A new high bottom would be advantageous for progress towards $50,000.”
A bullish divergence occurs when a technical indicator begins to rise while the price of the asset continues to trade lower. The signal may indicate that a trend reversal is quite imminent.
Van de Poppe also predicts that Bitcoin will eventually reach higher highs as the amount of BTC available on crypto exchanges decreases.
“Bitcoin foreign exchange reserves are reaching very low levels.
This is a sign that we are gaining more and more holders.
The inevitable is about to happen -> a big supply shock upwards and then a big rush to higher numbers.”
Low Bitcoin currency reserve levels mean that the current supply of BTC in the market is decreasing; this is a sign that investors are holding onto their coins as they expect the leading crypto asset to trend higher.
Low Bitcoin FX reserve levels indicate that the market’s current supply of BTC is dwindling, suggesting that investors are holding onto their coins in anticipation of a bullish trend of the leading crypto asset.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.