It’s no secret that the past couple of weeks have been quite negative for Bitcoin and the aggregated crypto market, with many major altcoins incurring intense downtrends that have erased a significant amount of gains incurred throughout the first couple of months in 2020.Most major cryptocurrencies, however, are now nearing critical support levels that could catalyze an intense relief rally.These levels also seem to coincide with a massive pennant that that total crypto market cap has been caught within, leading one analyst to note that the market could be preparing for “something huge.”Bitcoin and Crypto Market Near Key Support Levels That Could Spark Relief Rally At the time of writing, Bitcoin is trading down marginally at its current price of $8,730, which marks a notable climb from daily lows of $8,400 that were set when bears attempted to catalyze an intense selloff overnight.Bulls were able to step up and absorb the majority of this selling pressure, subsequently allowing BTC to reclaim its key support level at $8,700.This BTC volatility led the aggregated crypto market to move in tandem, with many major altcoins posting decisive bounces from their daily lows.Crypto Michaël – a prominent cryptocurrency trader and former full-time trader at the Amsterdam Stock Exchange – spoke about the markets in a recent tweet, explaining that he is anticipating BTC and major altcoins to drop slightly further before they find intense support.“If the markets make one more further drop south (and we lose these levels), I’d be watching 190-195$ for $ETH and $7,500-7,700 for $BTC. Think we also should see some relief in the equities markets after such a terrific week,” he explained.If the markets make one more further drop south (and we lose these levels), I’d be watching 190-195$ for $ETH and $7,500-7,700 for $BTC.Think we also should see some relief in the equities markets after such a terrific week.— Crypto Michaël (@CryptoMichNL) February 28, 2020
Something Huge Could be Brewing in the MarketsThe notion that Bitcoin and the market will drop further before finding some significant uptrend-catalyzing support isn’t unique to Michaël, as Murad – another highly respected analyst – recently offered a very interesting chart showing the total crypto market capitalization.While looking at the chart, it does appear that the market is trading within a massive flag, with this potentially meaning “something huge” is looming on the horizon.“Very interesting dynamic on the TOTAL chart. There seems to be a generational pivot precisely at the intersection of the two most important diagonals on the entire chart dating back to the ATH. Could BTC be coiling in preparation for something huge?”Very interesting dynamic on the TOTAL chart. There seems to be a generational pivot precisely at the intersection of the two most important diagonals on the entire chart dating back to the ATH.Could BTC be coiling in preparation for something huge? pic.twitter.com/BNwuRs8Bo6— Murad (@MustStopMurad) February 28, 2020
If the crypto market does dip lower before incurring some intense upwards momentum, it is possible that this formation will be validated, meaning that a massive movement is imminent.Featured image from Shutterstock.