Why Altcoins Are Dropping? Here’s What Traders Should do Now
The post Why Altcoins Are Dropping? Here’s What Traders Should do Now appeared first on Coinpedia Fintech News
Famous analyst Michael van de Poppe shares his expert thoughts on the current state of the cryptocurrency market and the potential movements of altcoins. In his recent video analysis, Michael delves into Bitcoin’s dominance, Ethereum’s performance, and the outlook for various altcoins.
Bitcoin Dominance: Consolidation and Potential Shift
According to Michael, Bitcoin’s dominance has been consolidating, with a rejection at the resistance level. While the weekly timeframe indicates an upward trend, there is a possibility of a drop in Bitcoin dominance, which could result in altcoins taking over. The expert suggests that the market could be witnessing a trend shift from bullish to bearish, with Bitcoin dominance potentially dropping 3-4%.
Furthermore, Michael highlights the need for a breakthrough in the total market cap, currently facing a crucial resistance at $1.25 trillion. The weekly trend remains unbroken, and there is a possibility of sideways action before an upward break.
Altcoins: Consolidation Before Continuation
The crypto analyst points out that altcoins are still facing a crucial resistance point. With the weekly trend still being upward, he emphasizes that there is no reason to panic. Michael believes that the market is currently consolidating before continuing on its upward trajectory. However, holding crucial levels for the market as a whole is essential.
Ethereum’s Performance and Support Levels
Michael notes that Ethereum has made a new yearly high, reaching $2.14K. Even with a corrective move down to $1,800, the trend remains upward, and the rally isn’t over yet. He highlights the importance of finding support in the gap area on the daily timeframe, without destroying the overall trend.
Portfolio Analysis and Altcoin Strategies
In his portfolio analysis, Michael emphasizes the importance of rebalancing and managing positions in various altcoins such as Chainlink, Curve, and RSR. With support ranges being reached for many altcoins against Bitcoin, there is a potential for consolidation and recovery.
For instance, Chainlink against Bitcoin has shown bullish divergence, running towards resistance and consolidating. If it maintains its higher low without creating a new lower low, the rally could continue. Similar dynamics are seen in other altcoins, such as AVAX and Curve, he said.
Filed under: Bitcoin - @ April 23, 2023 10:11 am