Cryptocurrency analyst Michaël van de Poppe says that Bitcoin (BTC) could experience another corrective move before appreciating.
Van de Poppe tells his 143,000 YouTube subscribers that Bitcoin’s price action is exhibiting a “potential rising wedge,” which could later trigger a downward move before another rally ensues.
“The price action right now, looking at the daily structure, might be indicating a potential rising wedge, resulting in a potential breakdown to be happening at some point later on, in which we get another corrective move before we’re going to get ourselves going upwards.”
The popular crypto analyst says Bitcoin needs to break above the $66,000 resistance level for a rally to materialize.
“The crucial resistance that we have to go through is this entire level that we have here.
I mean $66,000 is the level that we want to break through if you want to have upwards momentum.”
Van de Poppe says that if the support levels around the $62,000 and $63,000 area crumble, Bitcoin could fall to around $58,000.
“However, if this area is lost [$62,000-$63,000], the case of that heavier corrective move is actually in the books.
So then we’re going to drop all the way back towards the other side of the range and then we’re facing $58,000 as the next level of a test of support.”
Bitcoin is trading at $65,100 at time of writing.
In the case of Ethereum (ETH), Van de Poppe says that as long as the second-largest crypto asset’s support area between $4,600 and $4,300 holds, the outlook remains bullish.
“Right now we’ve had another beautiful retest taking place at $4,450. But preferably, and that’s what I wanted to see, is that you don’t really break beneath anything around $4,600.
So you don’t really want to crack beneath because if you crack beneath heavily, you’re going to take out those long stops here [around $4,000] as well. And at this stage we’re doing fine, so we can continue grinding or chopping around in this area that we have here.”
Ethereum is trading at $4,700 at time of writing.
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