Analyst Identifies Key Triggers for Crypto Market Recovery

A well-known analyst and trader, has identified four potential triggers that could revive the crypto market after a recent significant downturn.

Michaël van de Poppe suggests that substantial investments in Bitcoin (BTC) and Ethereum (ETH) ETFs could spark a market rebound. Van de Poppe believes that a positive shift in ETH would be particularly influential.

Capitulation is what has been happening in the past two weeks and has likely ended.#Ethereum has dropped to a new low for the first time in six months. #Bitcoin hits $58,000.#Altcoins bleeding to a new bear market low.

However, Ethereum is copypasting Bitcoin. Here’s why.… pic.twitter.com/pzxrMCYs9A

— Michaël van de Poppe (@CryptoMichNL) August 4, 2024

Moreover, he thinks that worsening economic conditions might drive up gold prices and weaken the US dollar, which would be beneficial for cryptocurrencies like Bitcoin. A rise in gold and a decline in the dollar and US Treasury yields could lead to a market rally.

Another factor he mentions is the importance of cryptocurrencies regaining key support levels. For example, Ethereum maintaining its position against Bitcoin (ETH/BTC) and moving upward could indicate a positive trend. Currently, ETH/BTC stands at 0.0449 BTC ($2,506).

Lastly, Van de Poppe notes that a settlement in the lawsuit between the SEC and Ripple could positively impact the market.

Ripple’s CEO, Brad Garlinghouse, has hinted that a resolution might be near, although the exact timing is uncertain. The lawsuit, filed by the SEC in 2020, accused Ripple of selling XRP as an unregistered security. While the court ruled that Ripple’s open-market sales did not constitute securities, it upheld the SEC’s claim regarding direct sales to institutions.

Van de Poppe remains hopeful despite the market correction, suggesting that cryptocurrencies might soon find support at their higher timeframe levels, indicating that the worst of the panic selling could be over.