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The renowned crypto trader Michael van de Poppe predicted in a tweet published earlier today that the global crypto market cap may establish its low for this latest correction. In the post, he noted that the total crypto market cap was still trading above the 200-week EMA and 200-week MA lines.
The recent drop in the crypto market cap was the result of the SEC suing Binance, the largest crypto exchange platform. Nevertheless, van de Poppe suggested that if the total stays above these two lines in the upcoming weeks, it would indicate that the latest market correction has reached its lowest point.
At press time, CoinMarketCap indicated that the collective crypto market cap stood at around $1.09 trillion following a 3.83% drop in the past 24 hours. From a technical perspective, the total was still trading above the aforementioned 200-week EMA and 200-week MA lines highlighted by the trader.
The two lines were, however, on the verge of signaling a bearish flag, with the 200-week EMA line looking to cross below the less-reactive 200-week MA line. Should this cross happen, the total crypto market cap will be at risk of continuing its drop toward around $830 billion in the next few weeks. A break below this level would see it plummet to $575 billion.
A confirmation of this bearish thesis will be if the total crypto market cap drops below the two lines in the next 3 weeks. Conversely, if the total remains above the 2 lines for this period then it may look to climb to the next resistance level at $1.32 trillion in the following couple of months.
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