Renowned cryptocurrency analyst Michael Van de Poppe, also known as CryptoMichNL, has provided his perspective on the ongoing legal issues within the cryptocurrency market. Amidst regulatory pressures, he suggested that the market’s reaction might be more intense than warranted. The analyst predicted a potential downward trend for Bitcoin, forecasting a price crash to $12,000.
The U.S. Securities and Exchange Commission (SEC) recently filed charges against Binance, the world’s largest cryptocurrency exchange. The SEC accused Binance of misleading investors about its operations, creating a shockwave that has rippled through the cryptocurrency market. In his commentary, Van de Poppe believes that this lawsuit could be the final regulatory action in this sphere, hinting at a possible stabilization of the market in the near future.
In his market analysis, Van de Poppe suggested that Bitcoin might be in a potential bottoming structure, setting the stage for his $12,000 price prediction. The analysis was based on the recent market trends and Bitcoin’s performance against the 200-week moving average (MA) and exponential moving average (EMA).
Furthermore, Van de Poppe emphasized the importance of considering the total market cap rather than focusing solely on Bitcoin. He noted that the total market cap has not broken beneath the all-time high of 2017, which could be a positive signal for the overall health of the cryptocurrency market.
In terms of trading strategies, Van de Poppe suggested that traders should look for long entries and focus on assets like Litecoin, which could present potential breakout opportunities in the coming weeks.
Meanwhile, Coinbase, another prominent player in the cryptocurrency market, has also come under scrutiny from the SEC. The regulatory body has accused Coinbase of operating as an unregistered broker, exchange, and clearing agency and has named both Coinbase and its holding company, CGI, as defendants in the suit. This lawsuit, filed just one day after the Binance suit, led to a 9% fall in Coinbase shares and could signify a pivotal moment for the future of the cryptocurrency market.
