A widely followed crypto analyst is warning that Bitcoin (BTC) could plummet below $50,000 if it fails to hold a key support level.
Crypto trader Michaël van de Poppe tells his 723,000 followers on the social media platform X that Bitcoin could witness another steep downward move if its immediate support level crumbles.
“Bitcoin is having a casual price correction on a Thursday evening. Holding a crucial level of support. Losing $56,000 [on the 12-hour chart] and we will likely see new lows or a retest at $48,000.”
Bitcoin is trading for $59,350 at time of writing, translating to a nearly 20% correction if BTC drops all the way down to $48,000.
Next up, the analyst says the native asset of the decentralized lending protocol Aave (AAVE) could go on a massive run if it can reclaim $135 as support, the top bound of an enduring range.
“I think DeFi (decentralized finance) is going to be one of the strongest performers in the remainder of 2024.
TVL (total value locked) ratios are high on ETH, especially when you combine this with market capitalization.
AAVE has been a strong performer in the past weeks and is likely to break out if it breaks $135.”
AAVE is trading for $114 at time of writing, up 6.27% in the last 24 hours.
Lastly, the analyst says if Ethereum (ETH) reclaims a key support level against Bitcoin (ETH/BTC), it would signal bullishness for the smart contract platform as well as for the broader altcoin market.
“Ethereum looks unchanged. To me: it’s important to break through 0.046 BTC and if that happens, the altcoins are starting their party time. Until then: patience.”
ETH/BTC is trading for 0.04413 BTC ($2,612) at time of writing, down 1.34% in the last 24 hours.
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