Although Bitcoin (BTC) has been trapped in a correction mode over the past six weeks, crypto analyst Michaël van de Poppe has revealed key conditions to be met for a rally towards $100,000 to happen.
Poppe believes that Bitcoin’s price could rocket to $100,000 if it holds above the 200-day Moving Average (MA), which has not been breached so far. Most importantly, the crypto analyst argued that BTC must regain the 21-day MA as a support level.
Source: Poppe, TradingView.
Poppe noted that Bitcoin could turn bullish in the near term if it consistently closes above its first hurdle at around $75,000 and the next at $77,200.
Earlier on Wednesday, the analyst highlighted that Bitcoin price action has been mirroring its 2023 rebound. Despite the choppy outlook, Poppe pointed out that a possible short squeeze, a sharp price rally triggered when rising prices force short sellers to cover their positions, adding forced buying volume that further accelerates the upward trend.
Why Bitcoin Price Faced Sustained Selling Pressure
Bitcoin price has faced increased bearish sentiment over the past six weeks following renewed selling pressure from United States investors. Furthermore, the U.S. spot exchange-traded funds (ETFs) have recorded approximately $1.778 billion in net cash outflow over the past three consecutive weeks, as per metrics from SoSoValue.
As a result, the demand for Bitcoin among U.S. investors has remained low. Moreover, the Bitcoin Coinbase Premium Gap- the difference between BTC price on Coinbase and Binance – remained largely negative, according to data from CryptoQuant.
Source: CoinGlass
Essentially, a negative Coinbase Premium Gap indicates that U.S. investors are not willing to pay the global BTC price, thereby showing their low demand.
Consequently, a renewed demand for BTC in the United States could stir up bullish sentiment.
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