After a strong start to 2024, the cryptocurrency market faced a significant setback in March, with a steep 40% drop that further pushed the market price to new lows on August 5. Despite this sharp correction, the market has recently started to recover, showing signs of improvement. Crypto analyst Michael van de Poppe notes that this rebound could signal a positive change ahead.
Crypto Market To Face Short-Term Drop
Prominent crypto analyst Michael van de Poppe has recently shared a critical update on the cryptocurrency market. The total market cap is currently $2.08 trillion, which is a small 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 expects the market could drop further. He predicts 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 bounce back.
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.
Crypto Market Cap Recovering Back
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.
If the market breaks out of its current trend, the next target could be $3.33 trillion. Meanwhile, this figure represents a new all-time high, based on the 1.61 Fibonacci retracement level of the previous wave.
Source: https://coinpedia.org/news/top-analyst-says-crypto-market-set-to-surge-is-the-worst-over/