Bitcoin’s support could determine the short-term momentum, analyst observes
- Crypto markets analyst Michael van de Poppe has identified crucial $41k support for Bitcoin
- He theorised that Bitcoin going above $46k is a trigger for altcoins to start performing better
- Van de Poppe expects extended sideways action for Ethereum unless it breaks above $3,100
Crypto strategist Michael van de Poppe has reviewed how the crypto community should expect the market to shape up over the next few days.
Speaking on the king cryptocurrency, Van de Poppe observed in a recent YouTube session that the coin is dancing around a crucial support level, which he says is likely to determine the direction Bitcoin could take in the short term.
He pointed out that $41k was an important price level for Bitcoin, explaining that should support persist at this level, then Bitcoin could test around $46k and predicts the momentum to continue. If not, he said it’s likely that markets plunge, theorising that new support levels could be established around $37k or $34k if it goes lower.
“If we are looking at the daily timeframe, we are also seeing a very important level that we are finding ourselves support and that is the area around $41,000. This slight block is technically the area that you should be watching whether we find ourselves support yes or no. If that one is going to be lost in the coming week or in the coming weeks, the entire construction is lost.”
The crypto strategist contends that should Bitcoin fail to grow above $46k, its price could establish more downward tests, meaning higher lows or previous lows. Referencing a history of rejection, he said falling below $41k would mean that Bitcoin will test lower levels.
Van de Poppe also explained that he would get back into altcoins once Bitcoin crosses $46k. He backed his assertion stating that, this confirmation (going above $46k), is a usual trigger for altcoins to start performing better in the markets.
“… If we do that, I’m assuming we’re going to see more upwards momentum and that is also the moment that I’m going to dive into altcoins again given that we are going to reclaim higher timeframe.”
On the second-largest crypto asset, the crypto analyst reckoned there might be an extended run of sideways action before it can consolidate and make a move upwards since Ethereum is seeing a period of resistance. The exception would be if the token regains above $3,100.
“We can see that we’ve got two big order blocks [$3,100 and $4,000] on the weekly timeframe as resistance is coming in and that’s [$3,100] is the one that we’re currently rejecting on. In that case, I’m assuming that we’re going to have a longer period of sideways action before we can actually start running again unless Ethereum regains the level of $3,100.”
Ethereum is as of writing trading at $3,051- up 6.25% in the last 24 hours. Bitcoin has gained 3.53% during the same period to reach $43,715 according to CoinMarketCap data. Solana and Avalanche are leading the gains chart among altcoins in the top ten – both recording 8% price upswings.