Trader Says Bitcoin Could Crash by Nearly 20% if Major Support Level Fails, Updates Outlook on Ethereum and Aave

An influential crypto analyst is cautioning that Bitcoin (BTC) may drop below $50,000 if it fails to maintain a crucial support level.

Crypto trader Michaël van de Poppe informs his 723,000 followers on the social media platform X that Bitcoin could experience a significant downward movement if it loses its immediate support.

“Bitcoin is currently undergoing a minor price correction on a Thursday evening while holding a critical support level. If it drops below $56,000 [on the 12-hour chart], we might see new lows or a retest at $48,000.”

Bitcoin is currently priced at $59,350, indicating a potential 20% correction if it drops to $48,000.

Looking ahead, the analyst suggests that the native token of the decentralized lending platform Aave (AAVE) could experience a significant rally if it manages to reclaim $135 as support, which is the upper boundary of a long-standing range.

“I believe that DeFi (decentralized finance) will be one of the top performers for the rest of 2024. TVL (total value locked) ratios are high on ETH, especially when combined with market capitalization. AAVE has shown strong performance in recent weeks and could break out if it surpasses $135.”

AAVE is currently trading at $114, marking a 6.27% increase in the last 24 hours.

Lastly, the analyst mentions that if Ethereum (ETH) manages to reclaim a key support level against Bitcoin (ETH/BTC), it could signal bullishness for the smart contract platform and the wider altcoin market.

“Ethereum appears unchanged to me. It’s crucial to break above 0.046 BTC, which could kick off a positive trend for altcoins. Until then, patience is key.”