Bitcoin continues to face high resistance, with the current price struggling to overcome the key 20-week EMA. Analyst Micheal van de Poppe shared his insights on the market's condition.
Resistance and Liquidity of Bitcoin
According to a recent post by Micheal van de Poppe, Bitcoin's dynamics have not changed, and the cryptocurrency is once again facing a clearly defined resistance level. The actions at these levels indicate that sellers are in control, preventing any significant bullish movement.
Risks of a New Bitcoin Low
Van de Poppe notes that until Bitcoin can regain its resistance points in the near future, the market may be moving towards a new low. He warned, "Unless this starts to break through, I would forecast that we are hitting a new low." The range between 103,000 to 100,000 may become a point for buyer intervention if the price falls below current support.
Impact on the Altcoin Market
Van de Poppe also suggests that a potential new Bitcoin low could create favorable conditions for altcoins. He recommended traders consider going max long on altcoins when Bitcoin's weakness persists. Historically, during periods when Bitcoin consolidates or falls, liquidity tends to move to other cryptocurrencies, providing excessive returns to initial holders.
Currently, there is caution in the market as traders await further developments. Despite the absence of bullish catalysts, technical configurations indicate that decisive movements may be imminent.
