Widely-followed crypto analyst Michaël van de Poppe says Bitcoin (BTC) is in a crucial support zone despite the leading crypto’s most recent dip below $40,000.
In a new YouTube update, Van de Poppe explains the events leading up to yesterday’s market dip to his 163,000 subscribers.
“After the US opened, we ran up, and then we started to nosedive again as the US equities also started to drop down.
So, that dropped down, and we didn’t really reclaim $43,500, and that dropped down beneath $42,400. I stated that, most likely, we are going to nuke because we’re dropping back in the range [beneath $42,400], and then it starts to nosedive to the other side and most likely even accelerate further because of the impact of such a drop.
That is actually what has been taking place.”
Despite the drop, Van de Poppe suggests BTC might find even stronger support beneath $40,000.
“But, actually, we are back into that range… the green zone [around $38,000] to find some support on, which is that crucial level I’ve been claiming for a while.”
Because of this, the trader foresees a scenario where Bitcoin could rapidly rebound.
“I think if we get back to $40,700, we are going to bounce back through it quite fast.”
Van de Poppe is also quick to point out that an immediate bounce from $38,000 is not inevitable.
“If we drop beneath this green zone, that is a shit show. Then we’re going to test $30,000.”
In light of the crypto market’s unpredictable volatility, Van de Poppe maps out what he thinks will likely come next for the largest crypto asset by market cap.
“The short-term conclusion would be that we are getting a weaker move south… which shows that potentially the buyers are getting momentum back into the markets and sellers are losing their actual momentum.
But that’s still a very early conclusion to make.
The conclusion to make is that we’ve lost $40,700 and that we have to crack through that one again. And if we do, then this entire move here [the current dip] is going to be a fake-out, and we’re going to test $46,000…
If I was looking for positions, I would be buying it.”
With Bitcoin down 10% on the day and trading for $38,560.79 at time of writing, the crypto analyst maintains an optimistic outlook.
“Conclusion: I think you should long, $40,700 is crucial, [and] we are creating a bullish divergence.”
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