A widely followed crypto strategist says that the recent sell-off in the crypto markets is reminiscent of the 2018 bear market bottom.
Michaël van de Poppe tells his 623,200 Twitter followers that he’s keeping a close eye on the TOTAL chart, which tracks the overall market cap of all crypto assets.
According to the crypto analyst, he’s waiting for TOTAL to retest the 200-week moving average (MA) just like it did during the 2018 crypto winter bottom.
“Where are we at this point? I’m seeing similar price action as Q4 2018.
Bounce from 200-week MA on the total market cap crypto.
Rejection and retest taking place, higher low being granted -> acceleration upwards after.
Very comparable price action.”
At time of writing, TOTAL is hovering above the 200-week MA at $1.002 trillion.
Looking at Bitcoin, the crypto strategist says BTC is still in a sideways accumulation phase but warns traders that the king crypto could still drop to around $19,000. After the brief correction, Van de Poppe sees BTC rallying in alignment with his predicted rise of the crypto market cap.
“Bitcoin scenario, I think, is quite likely.
In this case:
Bullish divergence is being created on a weekly timeframe.
Sweep of the lows for liquidity (or retest)
Total market capitalization 200-Week MA remains intact.
Accumulation period overall for investors.”
At time of writing, BTC is valued at $21,390, flat on the day.
As for Ethereum, Van de Poppe says ETH bulls should keep a close watch on a crucial support level.
“If we continue to drop, it’s important to keep an eye on the $19,300 level for Bitcoin and probably $1,400 area for Ethereum. Buyers should regularly step in around those zones.”
At time of writing, ETH is swapping hands for $1,630, up 1.30% in the last 24 hours.
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