As the overall crypto market value plummeted to $1.51 trillion on January 22, market-wide portfolio derisking and selling pressure across the global crypto market showed no signs of abating.
Bitcoin’s price fell below $35K, and Ethereum’s price fell below $2300. Nonetheless, a fresh week looked to bandage the recent losses, with Bitcoin recording tiny gains and altcoins surging.
Widely-followed Despite the leading cryptocurrency’s recent drop below $40,000, crypto researcher Michal van de Poppe believes Bitcoin (BTC) remains in a vital support zone.
Regardless of the decline, Van de Poppe believes BTC will find even more support below $40,000.”However, we’ve returned to that range, to find some support in the green zone [around $38,000], which is the critical level I’ve been claiming for a long.” he said. As a result, the trader sees a scenario in which Bitcoin quickly recovers.
“I think if we go back to $40,700, we’ll be able to get through it rather quickly.”
Van de Poppe is also eager to remind us that a jump from $38,000 is not a foregone conclusion.
“If we drop beneath this green zone, that is a shit show. Then we’re going to test $30,000.”
Why did Bitcoin dip?
Van de Poppe discusses the events leading up to yesterday’s market slump to his fans in a new YouTube video.
The analyst said we raced up once the US opened, and then we started to nosedive again as US equities began to fall. So that went down, and we didn’t actually regain $43,500, and it went down to under $42,400.
He mentioned that we are most likely going to nuke because we are sliding down within the range [below $42,400], and then it begins to nosedive to the other side, most likely accelerating even faster due to the impact of such a drop.