Leading cryptocurrency analyst Michaël van de Poppe predicts several significant market corrections, even as Bitcoin BTC/USD trades near record highs at $98,192.
What Happened: “Bitcoin is going to take liquidity on lower levels,” van de Poppe warned on X, forecasting “4-6 flash crashes” before year-end. These corrections could see Bitcoin drop 5-10% in a single day, while alternative cryptocurrencies might experience even steeper declines of 20-30%.
However, van de Poppe suggests these dramatic drops could present strategic entry points for investors. “After such a flash crash on Bitcoin, that’s the moment where Bitcoin consolidates, and altcoins shoot off,” he explained, describing the market’s rotation pattern.
Despite Bitcoin’s approach toward $100,000, market sentiment remains notably subdued compared to previous bull runs, suggesting potential volatility ahead as van de Poppe predicts. “Timing those flash crashes is hard, but they do happen,” he cautioned, advising investors to prepare for these market movements.
Why It Matters: The warning comes amid a broader cryptocurrency market surge, with total market capitalization reaching $3.3 trillion. Major institutions continue showing confidence in the sector, exemplified by MicroStrategy Inc.‘s MSTR recent $3 billion convertible note offering to acquire additional Bitcoin.
Supporting van de Poppe’s market rotation theory, other analysts including Milkybull project an upcoming “altseason” extending through March 2025. Technical indicators suggest alternative cryptocurrencies could see significant gains following Bitcoin’s correction periods.
Ethereum ETH/USD is trading at $3,324, up 7.71%, in the last 24 hours, while Solana SOL/USD reached $254.05, gaining 6.79%.
Bitcoin is currently trading at $98,407, up 3.65% in the last 24 hours.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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