After a strong start to 2024, the cryptocurrency market suffered a major setback in March, with a steep 40% drop that pushed the market price to new lows on August 5. Despite this sharp correction, the market has recently started to recover and is showing signs of improvement. Crypto analyst Michael van de Poppe notes that this rebound could signal a positive change going forward.
Crypto market will face decline in the short term
Prominent crypto analyst Michael van de Poppe recently shared a critical update on the cryptocurrency market. The total market cap currently stands at $2.08 trillion, which is a small increase of 0.95% from the previous day. However, Van de Poppe warns that the market may still be in a correction phase.
Van de Poppe expects the market to continue to fall. He predicts that the market cap could fall to $1.487 trillion, or even to $722 billion in the worst case. These potential lows could create strong support levels that could help the market recover.
However, the total trading volume in the crypto market has dropped by 24.92% and now stands at $54.58 billion in the past 24 hours. Despite this drop, van de Poppe believes that the market will recover. He expects a significant recovery and growth after this challenging period.
Crypto Market Cap Recovers
The cryptocurrency market has undergone several corrections, but the recent downturn has been particularly prolonged. Despite this, the market is showing signs of recovery.
Recent data shows that the Relative Strength Index (RSI) has fallen below 50 twice, which often signals a market bottom and the beginning of a recovery. In addition, the Moving Average Convergence Divergence (MACD) had a bearish crossover but quickly recovered and started moving higher.
If the market breaks out of the current trend, the next target could be $3.33 trillion. In the meantime, this figure represents a new all-time high, based on the 1.61 Fibonacci retracement level of the previous wave.
Also Read: Bitcoin Price Prediction: Mild Bullish Momentum Expected as Negative Financing Rates Indicate Positive Outlook
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