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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Aug 17, 2024 13:21 UTC
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Bitcoin, Ethereum Struggle Amid Crypto Market Correction: Analyst Warns of $722Bn Low
Crypto market suffered a sharp drop in March 2024 but is showing signs of recovery.
Analyst predicts potential further drop in market cap but expects strong rebound afterwards.
Technical indicators suggest a potential market bottom and upcoming price increase.
The cryptocurrency market, which had a strong start to 2024, suffered a sharp 40% drop in March, pushing prices to new lows by August 5. Despite this steep decline, the market is showing signs of recovery. Crypto analyst Michael van de Poppe suggests that this recent rebound might indicate a positive shift.
What awaits us ahead? Read on for a glimpse.
Market Overview: A Cautious Optimism
Michael van de Poppe has shared a key update on the cryptocurrency market. The total market capitalization is now $2.08 trillion, a slight increase of 0.95% from the previous day. However, van de Poppe warns that the market might still be in a correction phase.
Van de Poppe predicts that the market could drop further. He estimates that the market cap might fall to $1.487 trillion, or even as low as $722 billion in a worst-case scenario. These potential lows could create strong support levels that might help the market recover.
However, the total crypto market trading volume has dropped by 24.92%, now at $54.58 billion over the past 24 hours. Despite this decline, van de Poppe believes the market will recover. He expects a significant rebound and growth after this challenging period.
Signs of Recovery: Key Indicators
The cryptocurrency market has faced 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) fell below 50 twice, which often signals a market bottom and the beginning of a rebound. Additionally, the Moving Average Convergence Divergence (MACD) had a bearish crossover but quickly recovered and started moving upwards.
Looking Ahead
If the market breaks out of its current trend, the next target could be $3.33 trillion. This would be a new all-time high, based on the 1.61 Fibonacci retracement level of the previous market wave.
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