Leading cryptocurrency analyst Michaël van de Poppe set several Bitcoin price levels for traders after the price of the flagship cryptocurrency fell below $ 50,000 after the big sale.
Significant support at $ 47,500
The trader, who predicted that February and March could see a significant market correction, said he was looking at $ 47,500 as the support level and could see Bitcoin dropping to $ 42,000 to $ 44,000 after it broke, which could offer buying opportunities.
Bitcoin is currently trading at $ 48,500 after falling to $ 45,000. As Daily Hodl reported, van de Poppe pointed out that even if the price of BTC rises to $ 52,000 or even $ 53,000, these levels should be seen as resistance zones. He said that only a break above $ 55,000 would break the current downtrend.
Approaching bounce region for #Bitcoin.
I think we're close now.
Resistance zone at $48,500 and $51,000. pic.twitter.com/ctsLwLpVFD
— Michaël van de Poppe (@CryptoMichNL) February 23, 2021
The crypto analyst stated that traders who buy from the top of a rally can use the correction to lower the entry price and learn more about when to enter the market, as it is critical to be patient and wait for healthy retreats before entering.
According to Poppe’s words, it is imperative to aim to buy “based on historical price action” rather than buying in a parabolic rally so that it is possible to avoid excessive losses in the market.
The analyst also pointed out that historically March was a low-performing month in the cryptocurrency space, and said the bull market will not deteriorate as long as the BTC price remains above $ 29,000. The analyst wrote:
In the previous months of March, we usually experience a corrective period. We got a 32% correction in 2017. We got 45% correction in 2018. In 2020, we stopped the coronavirus collapse. We had a horizontal month in 2016.
According to Van de Poppe, even if, in a corrective move, Bitcoin drops below the 21-week moving average, “everything is fine.”