Bitcoin (BTC) experienced a significant drop in value on Wednesday, April 19, as a deep correction in the markets occurred.
Michael van de Poppe, a prominent crypto analyst, noted that the flagship digital asset was unable to hold at $29,700 – $29,800 and subsequently plummeted, causing a cascade of liquidations. Bitcoin’s current price of $29,264 represents a drop of 3.54% on the day, with a market capitalization of $566 billion. This drop has caused a loss of over $17 billion in just a few hours.
Van de Poppe has been tracking Bitcoin’s movements closely and has expressed concerns about the cryptocurrency’s inability to maintain its current value. According to him, this recent drop is a result of a market correction, and the situation is unlikely to change in the short term.
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The drop in Bitcoin’s value has not gone unnoticed by investors, many of whom have been caught off guard by the sudden plunge. Liquidations have been a significant factor in this decline, with many traders being forced to sell off their assets to cover losses.
Next two key levels for Bitcoin
The trading expert identified two crucial levels that Bitcoin needs to break in the coming days. According to him, breaking the $29,300 level could trigger shorts to get liquidated, which would result in a significant price increase. Conversely, failing to break this level could lead to further downward pressure on the BTC price.
Van de Poppe also highlighted that breaking the $29,700 level is crucial for Bitcoin to get back into its previous range. This level represents a significant resistance point, and breaking it would signal a return to bullish momentum.
While the current market correction has caused concern among investors, Van de Poppe remains optimistic about the long-term prospects of the cryptocurrency market. He believes that the market is undergoing a healthy correction and that the current dip is an opportunity for investors to accumulate more cryptocurrency at a lower price.
Breaking through the $1.25 trillion mark is akin to Bitcoin climbing through the $6,000 level, which was a significant milestone for the cryptocurrency in the past.
Indeed, the market analyst believes that breaking through this resistance level is likely, which could trigger a bear market relief rally that may push the total market capitalization to $1.65 trillion, representing a 30% increase. In the best-case scenario, the market cap could reach $2.1-$2.2 trillion, representing an 80% increase.
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