Crypto analyst Michaël van de Poppe is looking at what it will take for Bitcoin and altcoins to spark a sustainable turnaround.
In a new strategy session, Van de Poppe says BTC is now at a pivotal juncture.
As long as Bitcoin can remain above $22,300 in short-term, Van de Poppe says the leading cryptocurrency will likely be en route to a new all-time high.
“The area to watch is the zone around $22,300. If that holds, we might be getting an all-time high during this year, and then we’re going to look at this range around $25,600.”
BTC is at $23,773 at time of publishing, up 2.65% in the last 24 hours according to CoinMarketCap.
As for altcoins, the trader says he’s keeping a close watch on ETH/BTC as it is an indicator of how altcoins will perform against Bitcoin.
“I’m waiting to see either ETH/BTC bounces up while Bitcoin corrects against USD which indicates that altcoins have strength and money goes towards altcoins. Or ETH/BTC to bounce heavily when BTC is done correcting… But you have to take into account, the majority of the time, when Bitcoin corrects, altcoins drop faster.”
Looking at the ETH/USD chart, Van de Pope says that Ethereum is likely due for a heavy retracement after printing a local top.
“What we see here is a potential top or temporary top to occur, which means that we are most likely going to see for that higher low… Most likely we have seen a breakout in which we have seen a breakout in this range high, higher high, resistance of the range test, continuation, new high, which means that you want to see a new higher low in this zone here, after which the price can continue running. So the likelihood of going towards around $450 and $500 on ETH is still there.”
The trader says recent price action of Cardano against Bitcoin as well as the (ADA/BTC) pair shows it may be carving out a bottom around 0.000006.
“Now, we’re seeking to get a double bottom confirmation which frequently happens in a range. You get a test again. It starts to consolidate and then grind up until a new [breakout] occurs.”
Van de Poppe is also keeping tabs on Swipe (SXP/USD) which he says is currently consolidating as it hovers above a key support level of $0.75.
“Most likely, we’re just going to chop around until the moving averages start to get into place which is also going to be Q1 next year. Once this holds and we’re going to make a higher low on the lower timeframes, we’re going to reverse, and then we’re most likely going to expect a rally towards this area around $2.15 first.”
Tracking the movements of VET/BTC (VeChain), Van de Poppe notes that the pair remains in a downtrend but it is currently trading at 0.0000006, which is a level where it can bottom out before it can accelerate to 0.000001.
Another coin on the trader’s list is Ocean Protocol (OCEAN/BTC). Van de Poppe emphasizes that the pair is still in a downtrend and he expects sideways consolidation as it trades around 0.000015.
“Most likely, we’re going to see a bounce here and further sideways action before it starts to accelerate again in which the volatility drains away, in which the overall volume drains away.”
Follow us on Twitter, Facebook and Telegram
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/solarseven