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It has been a turbulent past couple of weeks for the crypto markets, with Bitcoin and many other altcoins rallying to fresh 2020 highs just a few weeks ago before meeting insurmountable resistance that has sparked an intense downtrend.
Now, one analyst is noting that the aggregated crypto market could be nearing a “make or break” level that sets the tone for where the markets will trend in the months ahead.
If the markets are rejected at a key level that lies slightly below their current level, it could spark an intense selloff that leads Bitcoin and most major altcoins to see intense selloffs.
The Crypto Market Shows Signs of Weakness as Bitcoin, Altcoins, Continue Inching Lower
Bitcoin’s intense downtrend seen throughout the past week or so has had devastating impacts on the crypto market, leading most major altcoins to cut significantly into the gains they incurred throughout their intense 2020 uptrends.
Bitcoin, which recently set year-to-date highs at $10,500, is currently trading at $8,600, only climbing slightly from its recent lows of $8,400.
This decline has been seen amongst most major altcoins, which have been severely underperforming BTC throughout the past several weeks.
The damage this downtrend has caused the market grows clear while looking at the aggregated cryptocurrency market capitalization, which has shed nearly $60 billion from its monthly highs of over $300 billion.
Markets Could Soon Rally to Yearly Highs, but it All Hinges on This Level
Crypto Michaël, a prominent cryptocurrency analyst and trader, explained in a recent tweet that the market cap is currently approaching its 21-week and 200-day moving average around $230 billion, which is a key support level that must be ardently defended.
If bulls are able to defend this level, Michaël notes that the market could rally up towards their 2020 highs at $300 billion. A drop below this level, however, could catalyze a sharp downwards movement to $190 billion.
“Crypto 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,” he noted.
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
— Michaël van de Poppe (@CryptoMichNL) March 1, 2020
How the markets trade in the coming few days will provide critical insights into where Bitcoin and altcoins will trend in the weeks and months ahead.
Featured image from Shutterstock.
