- Michael van de Poppe uploaded his latest technical analysis for the altcoin market.
- The trader shared that bank earnings have been the main instigator in the recent correction.
- ETH will need to strengthen against BTC before the rest of the altcoin market can rally.
The popular crypto trader Michael van de Poppe uploaded his latest technical analysis for the altcoin market to Youtube yesterday. In the video, van de Poppe stated that earnings data relating to banks has been the main driving force behind the correction seen in the crypto market recently.
The trader also shared that altcoins continue to weaken against the market leader Bitcoin (BTC), and that more investor confidence has to enter the crypto market before altcoin prices can begin to rise. In addition, van de Poppe stated that the altcoin market is entering into a period of potential resistance.
To demonstrate how altcoins are weakening against BTC, the trader analyzed the ETH/BTC chart. During this analysis, van de Poppe stated that ETH needs to break the resistance at 0.069 BTC before it, and the rest of the altcoin market, will receive a boost from investors and traders.
Daily chart for ETH/BTC (Source: TradingView)
Van de Poppe also shared that ETH is currently in a downtrend on the ETH/BTC chart. This suggests that BTC will continue to strengthen against the altcoin market in the short term.
Furthermore, the trader stated that a continuation of this downtrend for ETH will result in one more correction taking place on the ETH/BTC chart — resulting in ETH dropping to as low as 0.055BTC. The trader added that his bearish thesis for ETH/BTC is more likely to play out given the current correction taking place in the crypto market.
On the other hand, van de Poppe believes that BTC breaking above the key $30k level will be the first signal of strength for the crypto market. Thereafter, ETH will need to strengthen against BTC before van de Poppe believes altcoins will rally.
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