Bitcoin Faces Potential 20% Crash if Key Support Level Breaks, Trader Reassesses Ethereum and Aave
A well-known crypto analyst has issued a cautionary note, suggesting that Bitcoin (BTC) might experience a significant drop below $50,000 if it fails to maintain a critical support level.
According to crypto trader Michaël van de Poppe, who communicates with his substantial following of 723,000 individuals on the social media platform X, Bitcoin could face another substantial downward movement if it fails to uphold its immediate support level.
“Bitcoin is currently undergoing a moderate price correction on a Thursday evening, while holding onto a crucial support level. If it dips below $56,000 on the 12-hour chart, we may witness new lows or a retest at $48,000,” van de Poppe remarked.
As of the time of writing, Bitcoin is valued at $59,350, implying an almost 20% correction should BTC plummet to $48,000.
The analyst also highlighted the potential for the native asset of the decentralized lending platform Aave (AAVE) to embark on a significant rally if it manages to reclaim $135 as a support level, which represents the upper boundary of a persistent range.
“I anticipate that DeFi (decentralized finance) will emerge as one of the top performers in the latter part of 2024. Total value locked (TVL) ratios are notably high on ETH, particularly when coupled with market capitalization. AAVE has demonstrated robust performance in recent weeks and is poised for a breakout if it breaches $135,” van de Poppe shared.
At the current moment, AAVE is trading at $114, reflecting a 6.27% increase over the past 24 hours.
Lastly, the analyst pointed out that if Ethereum (ETH) manages to reclaim a critical support level against Bitcoin (ETH/BTC), it could signal positive momentum for the smart contract platform and the broader altcoin market.
“Ethereum appears to be holding steady. Breaking through 0.046 BTC is crucial, as it could mark the beginning of a bullish phase for altcoins. Until then, patience is key,” van de Poppe stated.
ETH/BTC is currently trading at 0.04413 BTC ($2,612), showing a 1.34% decline in the last 24 hours.
