Top crypto strategist and trader Michaël van de Poppe is keeping a close watch on Cardano’s price action while predicting an incoming supply shock for Bitcoin.
Van de Poppe tells his 404,100 Twitter followers that he sees Cardano slightly correcting against Bitcoin (ADA/BTC) in order to build a base for the next leg up.
“Expecting continuation on Cardano to be happening here. BTC pair [is] doing well.”
According to Van de Poppe’s chart, he expects Cardano to consolidate at 0.000045 BTC support, worth $2.03 at time of writing, before resuming its uptrend.
As for Bitcoin (BTC), the popular crypto analyst believes that the leading crypto asset is due to print one more leg down on the lower timeframes before it ignites a rally close to resistance at $50,000.
“Bullish divergence is ready to be played out with Bitcoin while consolidating at support. A higher low would be beneficial for continuation towards $50,000.”
A bullish divergence occurs when a technical indicator starts to trend higher while the asset’s price continues to trade lower. The signal could indicate that a trend reversal is on the horizon.
Van de Poppe also predicts Bitcoin will eventually run higher due to the declining amount of BTC sitting on crypto exchanges.
“Bitcoin exchange reserves are getting to very low levels.
That’s a signal that we’ve got more and more holders.
The inevitable is still about to happen -> heavy supply shock upwards in which we’ll get a big run to higher numbers.”
Low levels of Bitcoin exchange reserves mean that the available BTC supply in the market is dwindling, a sign that investors are holding on to their coins as they expect the leading crypto asset to trend higher.
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Featured Image: Shutterstock/Jurik Peter
