Whether Bitcoin, Ethereum or Cardano: the crypto markets are currently facing drastic losses. What’s next for the top coins?
Is there a threat of a new bear market?
For many, the move came as a surprise, but just as many had expected such a decline: Bitcoin and the aggregated crypto markets went down yesterday afternoon. BTC initially plunged from well above $ 52,000 to $ 46,760, then to as much as $ 45,000 in a second sell-off. A decrease of currently more than 10% within the last 24 hours.
Since then, the buyers have stepped on the plan and brought the cryptocurrency number 1 by market capitalization back to currently 45.690 dollars (data from Coinmarketcap.com). However, the brutal decline has shocked investors and raised concerns that markets may now be back in a downtrend. But how likely is that?
Top-on-chain analysts such as Willy Woo, the pseudonymous Dutchman “Plan B” or Will Clemente have been stressing for some time that the markets are unmistakably in a bull run. Plan B, for example, has been expecting a monthly close of $ 43,000 for September for several months – and then a rise to the new all-time high. Either way, September is historically considered a bearish month for Bitcoin. No other month in the past has seen more sharp declines and corrections. So does the leading currency not face a new bear market?
– PlanB (@100trillionUSD) September 7, 2021
“As in any cycle”
This question is also addressed by popular full-time trader Michaël van de Poppe (@CryptoMichNL on Twitter) in a new video analysis. He emphasizes: Such crashes are normal for Bitcoin. Poppe also assumes that the upward trend is still intact. He commented:
“We’ve seen this in every cycle, and we’ve also seen it during the bull cycles in the past.“
Such a downward price movement must take place, Poppe said, in order to liquidate everyone at the bottom:
“All long positions must be resolved, the FOMO (Fear Of Missing Out) must be ended to flush everyone out of the markets before the markets turn…”
According to his analysis, Bitcoin needs to recapture $ 46,700 for the bullish structure to persist. And:
“If we even get the chance to close above $ 49,000, which is the previous support zone, I think we’re done with this entire correction…”
Critical Areas in Ethereum and Cardano
Poppe also remains confident in Ethereum (to buy from eToro or Libertex). Should ETH end the day above $ 3,400, the trader expects the uptrend to continue. Ethereum is no stranger to corresponding crashes with subsequent recovery:
“We have experienced crashes, we have seen downward movements. And after that, the markets just turned around“
At Cardano (ADA), Poppe predicts a daily close above $ 2.45 as the level that must be reached. If Cardano manages to move back above this critical area, the upward trend could continue.
“Most likely, especially if Cardano closes above $ 2.45, we will see a bullish continuation.“
You can check out his entire crypto crash analysis here.