Cryptocurrency analyst and trader Michaël van de Poppe said the current war in Europe could push cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) to new lows.
In a new video, the analyst says the conflict between Ukraine and Russia is causing economic uncertainties affecting indices, inflation rates, as well as gold and Bitcoin prices:
“Bitcoin at this stage. We see it fall. significantly down and why? The reason for this is short-term panic. You have to understand that traders are short-term, very impulsive, emotional people, and that’s what the markets reflect…”
Van de Poppe says the current drop has created a gap between Bitcoin’s price and value, and that’s still the best cryptocurrency He says it could be an opportunity for those who are bullish in his unit. However, the analyst says that BTC could still make a new low near $30,000.
“The reason Bitcoin is currently falling is because people are giving up on these assets and shifting towards the US dollar or gold as we have seen. And because of this, Bitcoin’s valuation is falling. If we go a little lower and lose the entire area between $38,000 and $39,500, we will definitely put liquidity below the low. This is where you want to see the return. This is when you get a bullish divergence on a higher time frame and this is when a general reversal occurs. Right now the markets are correcting a little more.”
At the time of writing, Bitcoin was trading around $38,200.
Van de Poppe says that Ethereum-ruled altcoins have intense selling pressure that could potentially push them further down until ETH hits $2000.
“If we also look at altcoins, we can clearly see that altcoins have no interest in rising. There is a lot of uncertainty about the markets causing altcoins to be sold, especially when you look at Ethereum, we can conclude that we have a lower peak. If ETH continues to decline, I think we will test $2000.”
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