Prominent analyst Michaël van de Poppe says Bitcoin is in a critical support zone despite the recent price drop below $40,000.
In the new update Van de Poppe to explain Events that have caused the market to take a deep dive in the past few days.
“After the US market opened, prices rose but then started falling as stocks fell as well.
So Bitcoin failed to regain $43,500 and fell below $42,400. After that, due to the effects of such a drop, it begins to gradually decrease and accelerate even more. That’s really what’s going on.”
Despite the bearish situation, Van de Poppe believes BTC could find further support below $40,000 but will not bounce off $38,000 immediately.
“If the price goes below the green zone (~$38,000), that’s poor performance. After that, the price will test $30,000.”
Given the unpredictable volatility of the crypto market, Van de Poppe also predicted the next possible move for the largest cryptocurrency by market cap.
“In the near term, the move south looks weaker…suggesting buyers are likely to return to the market and sellers are losing their intrinsic momentum. But that’s a very hasty conclusion at this point.
The conclusion is that Bitcoin has lost $40,700 and needs to surpass that number again. If successful, all of the current downside is fake and will test $46,000…”
There is a great opportunity for Bitcoin to outperform other cryptos
Analyst Benjamin Cowen says that after a modest performance against altcoins, Bitcoin could see higher returns than other digital assets in 2021.
Cowen to speak that there is a high chance that Bitcoin will rise and outperform other cryptocurrencies, most likely in the second half of the year.
“I don’t think it’s going to happen this month or this quarter. Maybe not even in Q2.
But I think there’s a decent chance by the end of the year that we’ll see some sort of bull run that sees bitcoin outperform almost everything else.”
The trader said his prediction was based on the fact that Bitcoin had previously outperformed other top cryptocurrencies like ETH in 2019.
“If you look at the ETH chart, you can see that ETH has surged from around $120 to just over $300 as of February 2019. Well, ETH has grown 2.5x in that time. But the problem is that over the same period, Bitcoin is up over 321% – more than fourfold…
What we saw back then was Bitcoin rising in price and lagging far behind other cryptocurrencies. This is what happens when bitcoin goes up without moving sideways.”
BTC is up 321%. Source: Benjamin Cowen
Cowen also said that BTC has outperformed other digital assets in September 2020, bringing market cap dominance to nearly three-quarters of the total.
“Since September 2020, we have seen a significant surge in Bitcoin. By the end of the year, it was up about 150%. And the dominance went from about 57% to about 73% over that time.”
BTC.D Source: Benjamin Cowen
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