Acclaimed cryptocurrency analyst Michael van de Poppe recently shared his thoughts on the current state of the market, focusing on the performance of altcoins against Bitcoin and Ethereum. comprehensively video analysis, highlighted the importance of Bitcoin breaking the $30,000 barrier for altcoins to regain momentum.
Bitcoin Dominance and Altcoin Weakness
Michael began by discussing Bitcoin’s dominance in the market, which continues to increase, leaving altcoins struggling to keep up. He observed that Bitcoin remains strong while altcoins weaken, which has led to a prolonged correction in the altcoin market. According to Michael, this trend will continue unless there is an increase in market confidence, something that has been lacking recently.
Key Points of Resistance and Potential Reversals
The analyst noted that the dominance is approaching resistance points, suggesting that a possible reversal could be in the offing. For Ethereum to gain strength against Bitcoin, it must break its resistance point at 0.069. However, the trend remains down which could lead to another correction towards the 0.055 support zone.
Bitcoin’s Advance: A Catalyst For Altcoin Rally
Michael emphasized the importance of Bitcoin breaking the $30,000 mark, stating that it would be the first ingredient for confidence in altcoins. If Bitcoin consolidates after breaking this barrier, altcoins are expected to follow suit. He noted that the total market capitalization is still within a bullish structure, but has not broken through crucial resistance levels yet.
The analyst examined the performance of specific altcoins, including Atom and Chainlink, noting that both are approaching support ranges. He believes that if Bitcoin breaks the $30,000 mark and Ethereum against Bitcoin starts to show strength, the altcoins will regain momentum.
source: coinpedia.org