With the pullback on Saturday, Bitcoin lost its gains from February. Traders are unsure if this is the beginning of a wider decline or if it is only a passing trend. While some traders think that the high that was made in the middle of a negative cycle has ended, others think that it is only a correction inside a movement that will continue to seek higher price levels.
The Twitter user known as Pendulum Flow is among the traders who think the current bullish trend is about to come to an end. He analyzes the price increase with the total value locked (TVL) in decentralized finance (DeFi) applications using a model with the same name as the trader on the social network.
Pendulum Flow Model Shows TVL Should Increase in Bitcoin
From the standpoint of the Pendulum Flow pattern, the TVL must increase in tandem with the price of Ethereum for a bullish advance to be convincing. Hence, according to the trader, the present upward trend should come to a stop within three to five days. He utilized the entire market value of stablecoins, which tends to rise during bull cycles, in addition to the TVL as a metric. Yet, the stablecoin market has lost billions of dollars in recent weeks.
Yet, Dutch trader Michäel van de Poppe thinks that the positive trend will continue despite the current drop. He even calls for Bitcoin to fall to around $18,000.
Van de Poppe Suggests That Lateralization May Occur during Next Several Weeks
The Dutch trader contends that lateralization, which shouldn’t end until the second quarter of this year, may occur during the coming several weeks. According to a video posted this Saturday, van de Poppe said, “Even if the price rises up to $18,000, it is still a terrific purchasing opportunity, as the value of Bitcoin is extremely cheap at that time.”
Van de Poppe argues that although he thinks some macroeconomic developments may have an effect on the cryptocurrency market, this shouldn’t happen until the end of the year or the beginning of 2024.
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