Top crypto strategist and trader Michaël van de Poppe is mapping out the possible scenarios for Bitcoin, Ethereum and XRP as the leading cryptocurrency bursts to a new all-time high on several crypto exchanges including Binance, Bitstamp, and Kraken.
In a new strategy session, Van de Poppe says he believes that Bitcoin is not yet ready to go above key resistance at $20,000.
“Most likely when you’re getting into the range resistance point, we’re going to reverse and test the range low again. I’m not expecting that we’re going to see a continuation from this point here ($19,000) unless, what I just said, in which I’m expecting that we at least are going to this test range lows which is also the CME (Chicago Mercantile Exchange) at $17,000, and a gap like this is usually getting filled.
So then, we could be getting this scenario in which we’re going to chop around in this range between $16,000 and $19,000.
The less likely scenario is that we reject, run back up to $18,300, and then fall down to $14,000, and then we start to accelerate.”
Looking at Ethereum, the trader predicts that the leading smart contract platform will likely correct as it follows Bitcoin’s lead.
“ETH at this point, we are just at the range high, which is similar to Bitcoin in general… Once Bitcoin starts to correct, I suspect that ETH is going to correct as well… If we do lose this recent high around $589 which means that if we drop like this and we instantly reject at $589, that’s giving a short trigger and then I’m looking at this range (around $490).”
As for ETH/BTC, Van de Poppe expects the pair to continue to consolidate between 0.026 and 0.032 until late February 2021. At that point, the trader sees ETH/BTC taking out range resistance of 0.032.
The trader is also keeping an eye on XRP. Van de Poppe expects the third-largest crypto asset to consolidate and trade around support of $0.58.
“Nice bounce up but now is rejecting. This is the crucial breaker we held ($0.58). The crucial breaker that could be failing is $0.617. So once we break below and we reject, that’s the point.”
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