The market has been in the negative for the past 24 hours, with Bitcoin, the market leader, down 0.25 percent. Ethereum has dropped even more, losing 1.15 percent, while the rest of the market has followed suit.
According to crypto trader Michaal van de Poppe, the current battle in Eastern Europe may drive crypto heavyweights Bitcoin (BTC) and Ethereum (ETH) to new lows.
The analyst tells his YouTube subscribers in a new video that the crisis between Ukraine and Russia is producing economic uncertainty, which is affecting indices, inflation rates, and gold and Bitcoin prices.
He says, Bitcoin is dropping down significantly due to short term panic. Traders are short term based, very impulsive and emotional and that is what is reflecting in the market.
According to Van de Poppe, the present decline has created a difference between Bitcoin’s price and its worth, which could be an opportunity for those who remain bullish on the leading cryptocurrency. BTC, on the other hand, he believes, might still strike a new lower low at about $30,000.
He says, we’ll absolutely take the liquidity below the bottom if we drop any more and lose this entire range between $38,000 and $39,500. That’s where the reversal should occur. That’s when higher timeframe bullish divergence appears, and that’s when the entire reversal occurs. The markets are correcting again right now.
The price of bitcoin continues to show strong bearish indications, indicating that downside pressure is likely to persist. Despite the present negative technicals, early warning indications of a bullish turnaround continue to play out.
According to Van de Poppe, altcoins, led by Ethereum, are under tremendous sell-side pressure, which might send them still lower, possibly until ETH reaches the $2,000 threshold.
He says, If we look at altcoins as well, we can clearly see that they have no desire to rise. They’re genuinely going to grind some more. We may deduce that we’ve been making another lower high because there is so much uncertainty in the markets, resulting in cryptocurrencies selling off, especially when looking at Ethereum.
In his opinion, we’ve just stated a prospective Bitcoin outlook in which we’ll take the lows before reversing. When you consider Ethereum, your odds will improve. If we don’t recapture any level, I believe we’ll test these lows, possibly as low as $2,000.
Since December 13, 2021, Ethereum’s price behaviour has been the most pessimistic. If bears confirm the present breakout, price levels below $2,000 are likely.
Written by: Nidhi Kolhapur
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