The past few weeks have been turbulent for the crypto markets as Bitcoin and many other altcoins rose to new highs in 2020 just a few weeks ago before the market encountered insurmountable resistance that triggered an intense downtrend.
An analyst is now finding that the aggregate crypto market could be approaching a make-or-break level that sets the tone for where the markets will go in the coming months.
If the markets are rejected at a key level that is slightly below their current level, this could trigger an intense sell-off, leading to a further drop in prices for Bitcoin and most major altcoins.
The crypto market shows signs of weakness
Bitcoin’s intense downward trend in the past week has had a devastating impact on the crypto market, causing most large altcoins to significantly limit the profits they suffered during their intense upward trend in 2020.
Bitcoin, which recently hit a new annual high of $ 10,500, is currently trading at $ 8,600, just slightly above the recent low of $ 8,400. This decline has been seen in most large altcoins that have fallen significantly below the BTC in recent weeks.
The damage this downtrend has done to the market becomes apparent when you look at the aggregate market capitalization of cryptocurrencies, which have lost nearly $ 60 billion from their monthly highs of over $ 300 billion.
Markets could soon recover to annual highs, but everything depends on that level
Crypto Michaël, a prominent crypto analyst and trader, recently tweeted that market capitalization is currently nearing its 21-week and 200-day moving averages, which is an important support that needs to be vigorously defended.
If the bulls can defend this level, the market could rebound towards the $ 300 billion highs in 2020, Michaël said. Falling below this level could trigger a sharp downward move to $ 190 billion.
Total market capitalization approaching the 21-Week MA and the 200-Day MA.
Both are lining up around $ 230-235 billion. Holding that and we could make a new S / R flip & target $ 300 billion again.
Dropping below and I’d look for $ 190 billion. pic.twitter.com/9Mbh3T7BAO
– Crypto Michaël (@CryptoMichNL) March 1, 2020
How the markets will act in the coming days will provide critical insights into the development of Bitcoin and Altcoins in the coming weeks and months.
Proof of text: newsbtc
Last update: Sunday March 1st, 2020
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