Analyst Michaël van de Poppe warns about the fall of the crypto market before its growth

What’s new? Crypto analyst and trader Michaël van de Poppe has compared the recent sell-off in the crypto market to the bottom of the 2018 bear market. He observes a chart that shows the total market capitalization of all crypto assets. According to the analyst, the chart could retest the 200-week moving average (MA) as it did during the 2018 crypto bottom. He noted that after a bounce from the 200-week MA, the chart will make a retest, then a higher low will be formed, after which growth may begin. As of August 22, 12:50 UTC, total market capitalization is $1,069 trillion, down 11% for the week, according to CoinGecko.

The material is not an investment recommendation and is published for information purposes only.

Where are we at this point?I'm seeing similar price action as Q4 2018.▫️ Bounce from 200-Week MA on the Total Market Cap #crypto.▫️ Rejection and retest taking place, higher low being granted -> acceleration upwards after.✅Very comparable price action. pic.twitter.com/c35Nx88acx— Michaël van de Poppe (@CryptoMichNL) August 20, 2022

Moving Average is one of the most commonly used types of technical indicators showing the average value of a cryptocurrency’s price over a certain time period.

What else does the trader say? As for bitcoin, the crypto strategist says that the asset is still in a sideways accumulation phase. At the same time, van de Poppe warns traders that the BTC rate could fall to about $19 000. The expert expects bitcoin to rally after a brief correction, based on the prediction of market growth. Regarding Ethereum, van de Poppe recommends that investors keep a close eye on the most important support level. He named the $19 300 level for bitcoin and the $1400 level for Ethereum.

Bitcoin is trading at $21 369, having gained 0,89% in 24 hours. Ethereum is at $1614 (+3,71%), according to Binance

On August 8, representatives of financial holding company JPMorgan said that after bitcoin fell 75% from its all-time high, the cryptocurrency market “found a floor.” Analysts cited community expectations for the Ethereum network upgrade as one of the factors influencing the digital asset market's recovery.