Analyst Warns of Deeper Corrections for Top Cryptocurrencies as Markets React to US Inflation Data
Renowned analyst and trader Michaël van de Poppe is cautioning investors that the top two cryptocurrencies by market cap, Bitcoin and Ethereum, may experience significant corrections as global markets respond to new US inflation data.
Van de Poppe recently shared his insights with his extensive following on X, stating that following Bitcoin hitting new all-time highs and Ethereum surging past $3,000, a downward trend is likely imminent based on historical patterns.
“Classic market behavior unfolding here. We can expect further declines in both Bitcoin and Ethereum to shake out long positions. Remember: increased volatility often precedes price corrections. Brace yourself for potential sharp downturns.”
According to van de Poppe’s analysis, Ethereum could see a decline to around $2,750 before a reversal in its trend is likely.
As of the time of writing, Bitcoin is trading at $116,947, down 5% from its peak of $122,838 just days ago. Meanwhile, Ethereum is priced at $3,048, marking a 19% increase over the past week.
Shifting focus to the layer-1 blockchain SUI Network (SUI), van de Poppe believes the digital asset is displaying strong market fundamentals after reclaiming the $3 level, indicating further upside potential.
“Resilient ecosystems often bounce back robustly during market reversals, and SUI is no exception. Holding steady support at $2.35, it has surged following the downtrend breakout. With a crucial breach above $3, it’s primed for a ‘buy the dip’ scenario as it heads upward.”
At present, SUI is trading at $4.01, reflecting a 2.4% increase in the past 24 hours.
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