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BTC Rejected at Resistance and 20-Week EMA: @CryptoMichNL Warns of New Low Before Altcoin Long Setup | Flash News Detail | Blockchain.News
Latest Update
9/4/2025 8:23:00 AM

BTC Rejected at Resistance and 20-Week EMA: @CryptoMichNL Warns of New Low Before Altcoin Long Setup

BTC Rejected at Resistance and 20-Week EMA: @CryptoMichNL Warns of New Low Before Altcoin Long Setup

According to @CryptoMichNL, BTC failed to break key resistance and the 20-week EMA, keeping momentum capped below those levels; source: @CryptoMichNL on X, Sep 4, 2025. He added that if BTC does not clear these barriers, he projects a new low; source: @CryptoMichNL on X, Sep 4, 2025. He stated that such a new low would be the point to go maximum long on altcoins, advising traders to brace for impact; source: @CryptoMichNL on X, Sep 4, 2025.

Source

Analysis

In the ever-volatile world of cryptocurrency trading, Bitcoin ($BTC) continues to face stiff resistance levels that are keeping traders on high alert. According to crypto analyst Michaël van de Poppe, nothing has fundamentally shifted in the BTC market landscape, with key resistance points holding firm and preventing any significant upward breakout. This analysis highlights the ongoing struggle at these critical thresholds, including the 20-Week Exponential Moving Average (EMA), which has acted as a formidable barrier. For traders eyeing Bitcoin price movements, this inability to breach resistance suggests potential downside risks, possibly leading to new lows that could reshape market dynamics.

Bitcoin Resistance and EMA Challenges: A Trader's Perspective

Diving deeper into the technicals, Bitcoin's recent attempts to push through established resistance zones have fallen short, as noted in the September 4, 2025, update from Michaël van de Poppe. The 20-Week EMA, a widely watched indicator for long-term trends, remains unbroken, signaling that bullish momentum is lacking. Historically, when BTC fails to conquer such levels, it often results in corrective phases where prices test lower supports. Traders should monitor key support levels around $50,000 to $55,000, based on past price action, as a breakdown here could accelerate selling pressure. This scenario not only affects BTC spot prices but also influences futures markets, where open interest and funding rates could spike amid increased volatility.

From a trading volume standpoint, recent sessions have shown subdued activity, with daily volumes on major exchanges hovering below average. Without a surge in buying interest to overcome the resistance, the path of least resistance appears downward. Savvy traders might consider this an opportunity to position for short-term shorts, targeting potential new lows. However, the analyst advises bracing for impact, implying that any dip to fresh bottoms could be the ideal entry point for going 'max long' on altcoins. This strategy underscores the interconnectedness of BTC dominance and altcoin performance, where a Bitcoin correction often paves the way for altseason rallies.

Altcoin Trading Opportunities Amid BTC Uncertainty

Shifting focus to altcoins, the projection of new BTC lows presents compelling trading setups. If Bitcoin indeed carves out lower prices, altcoins like Ethereum ($ETH), Solana ($SOL), and emerging tokens could see relative strength. Historical patterns show that during BTC downturns, capital rotates into altcoins, boosting their market caps and trading volumes. For instance, on-chain metrics such as transaction counts and wallet activity often surge in altcoin ecosystems when BTC falters. Traders should watch for BTC dominance dropping below 50%, a common precursor to altcoin outperformance. Positioning long on altcoins at BTC's potential lows could yield significant returns, especially in pairs like ETH/BTC or SOL/BTC, where relative value plays come into focus.

Market sentiment plays a crucial role here, with fear and greed indices likely tilting towards fear if resistance holds. Institutional flows, including ETF inflows for Bitcoin, could provide some cushion, but without a catalyst like positive regulatory news or macroeconomic shifts, the downside remains probable. Traders are encouraged to use tools like RSI and MACD for confirmation; currently, overbought signals on shorter timeframes suggest exhaustion in upward attempts. Incorporating stop-losses below key supports and taking profits at resistance retests will be essential for risk management in this environment.

Broader Market Implications and Cross-Asset Correlations

Looking beyond crypto, Bitcoin's resistance battle has ripple effects on stock markets, particularly tech-heavy indices like the Nasdaq, which often correlate with BTC movements. If BTC heads to new lows, it could signal broader risk-off sentiment, impacting AI-related stocks and Web3 ventures. Conversely, a eventual breakout above the 20-Week EMA might ignite a rally, drawing parallels to past bull runs where BTC led gains across assets. For crypto traders, this means diversifying into stablecoins during uncertainty or exploring leveraged positions in altcoins for amplified gains.

In summary, the current BTC setup demands vigilance, with resistance and the 20-Week EMA as pivotal battlegrounds. By preparing for potential new lows and capitalizing on altcoin opportunities, traders can navigate this phase effectively. Always base decisions on real-time data and verified indicators to optimize trading strategies in the dynamic crypto landscape.

Michaël van de Poppe

@CryptoMichNL

Macro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast