As cryptocurrency markets navigate through turbulent times, prominent analyst Michaël van de Poppe has shared insights suggesting that the current downturn may persist for another 1-2 weeks, potentially marking the formation of market lows for major assets including Bitcoin (BTC). This perspective opens up strategic opportunities for traders to accumulate positions in undervalued tokens, with Arbitrum (ARB) standing out as a prime candidate. According to Michaël van de Poppe's tweet on November 16, 2025, ARB is positioned as one of the strongest Layer 2 solutions in the Ethereum ecosystem, appearing extremely undervalued amid the broader market pain. This analysis aligns with ongoing trends where Layer 2 protocols are gaining traction for their scalability benefits, making ARB a focal point for long-term investors eyeing Ethereum's growth.

Bitcoin's Potential Lows and Market Sentiment

In the context of Bitcoin (BTC), the anticipated 1-2 week period of pain could lead to critical support levels being tested, providing a window for accumulation before a potential rebound. Traders should monitor key price points, such as BTC's recent support around $60,000, which has historically acted as a psychological barrier during corrections. If the market dips further, as forecasted, volumes might spike on exchanges like Binance, indicating capitulation and setting the stage for a reversal. Michaël van de Poppe emphasizes that this timeframe is ideal for spotting undervalued assets, with BTC's dominance in the crypto space making it a bellwether for altcoins. Market sentiment remains bearish, influenced by macroeconomic factors like interest rate uncertainties, but institutional flows into BTC ETFs could provide underlying support, potentially stabilizing prices once the lows are established.

ARB's Strength as a Layer 2 Powerhouse

Delving deeper into Arbitrum (ARB), its role as a leading Ethereum Layer 2 solution underscores its undervaluation. With Ethereum's mainnet facing scalability issues, ARB offers optimistic rollups that reduce transaction costs and speed, attracting developers and users alike. Trading data from recent sessions shows ARB trading at levels that suggest a discount compared to its peak, with potential resistance at $1.50 and support near $0.80. Accumulating during this pain period could yield significant returns if Ethereum's ecosystem expands, especially with upcoming upgrades like Dencun. On-chain metrics, such as increasing total value locked (TVL) in Arbitrum protocols, support the view that ARB is poised for growth, making it a smart pick for diversified crypto portfolios.

From a broader trading perspective, this window of opportunity extends to cross-market correlations. For instance, if stock markets experience volatility due to economic data releases, crypto assets like BTC and ARB often mirror these movements, offering hedging strategies. Traders might consider pairs like ARB/ETH or BTC/USDT on major platforms, watching for volume surges that signal accumulation phases. Institutional interest in Layer 2 tokens is rising, as evidenced by venture capital inflows into Ethereum scaling solutions, which could drive ARB's price higher post-correction. Overall, the next 1-2 weeks present a calculated risk for accumulation, with a focus on risk management through stop-loss orders and position sizing to navigate the expected pain.

Trading Strategies and Opportunities in Volatile Markets

To capitalize on these insights, traders should employ strategies like dollar-cost averaging (DCA) into ARB and BTC during dips, aiming for long-term holds. Support and resistance analysis reveals BTC's potential bounce from $58,000, while ARB could find footing at $0.75, based on historical patterns. Market indicators such as the Relative Strength Index (RSI) for BTC hovering near oversold levels around 30 suggest an impending uptick. For those exploring altcoin plays, ARB's correlation with Ethereum (ETH) trading pairs offers leveraged opportunities, especially if ETH breaks above $3,000. Broader implications include monitoring on-chain activity, where rising transaction counts on Arbitrum could precede price rallies. In summary, while short-term pain looms, strategic accumulation in undervalued assets like ARB could position traders favorably for the next bull cycle, emphasizing patience and data-driven decisions in cryptocurrency trading.