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August 17, 2024

Trader Says Bitcoin Could Crash by Nearly 20% if Major Support Level Fails, Updates Outlook on Ethereum and Aave

By Daily Hodl Staff

A widely followed crypto analyst is warning that Bitcoin (BTC) could plummet below $50,000 if it fails to hold a key support level.

Crypto trader Michaël van de Poppe tells his 723,000 followers on the social media platform X that Bitcoin could witness another steep downward move if its immediate support level crumbles.

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“Bitcoin is having a casual price correction on a Thursday evening. Holding a crucial level of support. Losing $56,000 [on the 12-hour chart] and we will likely see new lows or a retest at $48,000.”

Source: Michaël van de Poppe/X

Bitcoin is trading for $59,350 at time of writing, translating to a nearly 20% correction if BTC drops all the way down to $48,000.

Next up, the analyst says the native asset of the decentralized lending protocol Aave (AAVE) could go on a massive run if it can reclaim $135 as support, the top bound of an enduring range.

“I think DeFi (decentralized finance) is going to be one of the strongest performers in the remainder of 2024.

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TVL (total value locked) ratios are high on ETH, especially when you combine this with market capitalization.

AAVE has been a strong performer in the past weeks and is likely to break out if it breaks $135.”

Source: Michaël van de Poppe/X

AAVE is trading for $114 at time of writing, up 6.27% in the last 24 hours.

Lastly, the analyst says if Ethereum (ETH) reclaims a key support level against Bitcoin (ETH/BTC), it would signal bullishness for the smart contract platform as well as for the broader altcoin market.

“Ethereum looks unchanged. To me: it’s important to break through 0.046 BTC and if that happens, the altcoins are starting their party time. Until then: patience.”

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Source: Michaël van de Poppe/X

ETH/BTC is trading for 0.04413 BTC ($2,612) at time of writing, down 1.34% in the last 24 hours.

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