Widely followed analyst Michaël van de Poppe is laying out what he thinks could be next for Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) following the dramatic correction that saw more than $500 billion leave the crypto markets.
In a new strategy session, Van De Poppe says abrupt crashes are nothing new for Bitcoin and he believes that the market’s bull structure appears to still be intact.
“We’ve seen it happening in every cycle and we’ve also seen it happening during those bull cycles back in the day. So this chain reaction to the downside needs to happen to liquidate everyone on the bottom. So every long has to be liquidated, the FOMO has to get killed in order to wash everyone out of the markets before the markets start to reverse…
If we’re going to regain $46,700, the structure still stands. This means that we’re still making higher lows. $46,700 to $47,000 is a very remarkable level for me. If we even get the chance to get to close above $49,000, which is the previous support zone, I think we’re done with this entire correction…”
Looking at Ethereum, the analyst identifies a critical support zone from which ETH can resume a bullish trend upward.
“If Ethereum is going to close above $3,400, we are quite sure that the low is in and it’s going to continue moving from here. When we are looking back at the price structure, we see that we’ve had those washes in the beginning as well.
We’ve seen crashes happening, we’ve seen drop-downs happening. And after that the markets just reversed, because such a deep wick as this one shows that there’s actually interest from the markets, causing bias pressure.”
As for Cardano, Van De Poppe says ADA has a strong support level at $2.00 and would need to close above $2.45 before an upward trend can continue.
“Most likely, especially if Cardano is going to close above $2.45, we’re going to see bullish continuation.”
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Featured Image: Shutterstock/Zelenov Iurii