A widely followed crypto strategist says the recent sell off in the cryptocurrency markets is reminiscent of the bear market bottom of 2018.
Michaël van de Poppe tells his 623,200 followers on Twitter that he is keeping an eye on the TOTAL chart, which tracks the combined market capitalization of all cryptocurrencies.
According to the cryptocurrency analyst, he is waiting for TOTAL to re-test the 200-week moving average (MA) just like it did during the 2018 cryptocurrency winter low.
“Where are we at this point? I see price action similar to Q4 2018.
Bounces off the 200-week moving average on the cryptocurrency of total market cap.
Refusal and new test in progress, higher minimum allowed -> acceleration upwards after.
Very comparable price action. “
At the time of writing, TOTAL is above the 200-week moving average at $ 1.002 trillion.
Looking at Bitcoin, the crypto-strategist claims that BTC is still in a side accumulation phase, but warns traders that the cryptocurrency could still drop to around $ 19,000. After the brief correction, Van de Poppe sees BTC grow in line with its expected increase in cryptocurrency market cap.
“The Bitcoin scenario, I think, is quite probable.
In this case:
The bullish divergence is created over a weekly time frame.
Sweep of the minimums for liquidity (or new test)
The total market capitalization 200 weeks MA remains intact.
Total accumulation period for investors “.
At the time of writing, BTC is worth $ 21,390, flat for the day.
As for Ethereum, Van de Poppe says the ETH bulls should stay closed look at a crucial support level.
“If we continue to fall, it is important to keep an eye on the $ 19,300 level for Bitcoin and probably the $ 1,400 area for Ethereum. Buyers should regularly enter those areas. “
At the time of writing, ETH is trading hands for $ 1,630, up 1.30% over the past 24 hours.
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