By Tom BlitzerKey Insights:
- Altcoins are currently weak against Bitcoin, and investor confidence must be restored for this to change.
- ETH/BTC chart shows Ethereum in a downtrend, and a potential drop in ETH’s value may occur.
- The cryptocurrency market will show strength when BTC breaches the $30k threshold, and ETH must demonstrate strength against BTC for altcoins to rally.
Yesterday, the well-known crypto trader, Michael van de Poppe, shared his most recent technical analysis of the altcoin market on Youtube. According to van de Poppe, the recent correction observed in the crypto market has been primarily influenced by earnings data about banks. He explained that this had been the main driving force behind the market’s recent downward trend.
Bitcoin dominating altcoin weakness
According to the trader, altcoins are currently experiencing a decline when compared to the leading cryptocurrency, Bitcoin (BTC). This situation can only change when investor confidence is restored in the crypto market. Additionally, van de Poppe noted that the altcoin market is currently approaching a phase of possible resistance.
The trader examined the chart of ETH relative to BTC to highlight how altcoins are losing value in comparison to BTC. During this analysis, van de Poppe stated that for the Ethereum market to receive a boost from investors and traders, ETH first needs to break the resistance located at 0.069 BTC. This will apply to the entire altcoin market.
According to Van de Poppe, a current downward trend can be seen in the ETH/BTC chart, which implies that Ethereum is now trading at a lower price. As a direct consequence, Bitcoin is expected to strengthen its position relative to other cryptocurrencies in the not-too-distant future.
Crypto market correction hints at ETH drop
In addition, the trader has expressed their belief that should the current downtrend for ETH continue, another correction will follow on the ETH/BTC chart. This correction could potentially lead to a drop in ETH’s value, with the price plummeting as low as 0.055BTC. The trader further emphasized that their bearish outlook for ETH/BTC is highly probable, given the ongoing market correction in the cryptocurrency sphere.
According to van de Poppe, the cryptocurrency market will show signs of strength when BTC breaches the crucial $30k threshold. The analyst further suggests that for altcoins to rally, ETH must demonstrate strength against BTC. This implies that altcoins’ upward momentum is contingent upon the performance of BTC and ETH.