Analyst Michael van de Poppe is optimistic about the state of the cryptocurrency market, especially Bitcoin (BTC). According to a recent analysis, van de Poppe stated that BTC is showing strength by exhibiting a streak that reflects a repeat of its historic rally.
Since the beginning of the year, Bitcoin has recorded cumulative gains of more than 100%. A year ago, one BTC was worth exactly US$15,000, but today the cryptocurrency’s price is close to US$37,000. In other words, an increase of 124% in the 12-month period.
In this sense, van de Poppe points out that this means a key factor: BTC is finally entering the first phase of the next bull cycle.
Current positioning of Bitcoin (BTC)
Based on a chart shared by the analyst, Bitcoin’s price moves in a repeating sequence marked by a year in which the currency experiences intense downward pressure. Next comes another year of intense accumulation, followed by a year defined by a bull phase.
Finally, the last cycle occurs, culminating in a mania that can eventually cause prices to skyrocket. According to the chart shared below, Bitcoin is currently entering the 1st year of the bullish phase, as marked by the purple box.
Many analysts agree that the time is right for Bitcoin, given the consistent accumulation over the past year, with companies like MicroStrategy increasing their purchases. Furthermore, the analyst is optimistic that with the probability of approval of the Bitcoin spot ETF in the United States.
Another bullish trigger is the halving, which will cut the issuance of new Bitcoins. According to estimates, the halving should take place sometime in April next year. This way, the market could really dive into the mania phase in the next six months after the halving.
In addition to van de Poppe, several industry experts also predicted an increase in the target price for BTC before the ETF and halving. For example, Arthur Hayes, founder of BitMEX, states that the cryptocurrency’s price could surpass US$120,000 in this next cycle.
Outlook for altcoins
van de Poppe’s analysis would not be complete without mentioning the impact on altcoins. In this sense, the analyst believes that altcoins behave differently at each stage of the BTC appreciation cycle. In the accumulation phase, altcoins are usually in a downtrend.
But this trend changes quickly, as most altcoins usually join Bitcoin in bull and mania phases, respectively.
Judging by the current performance of Solana (SOL), Chainlink (LINK), and the dramatic revival of FTX Token (FTT), van de Poppe’s thesis is in line with reality. As the industry awaits more important triggers like the ETF approval update, Bitcoin and altcoins could soar higher in the coming weeks.