Crypto Market Outlook: Are Altcoins On The Verge Of 50% Crash? Here’s What To Expect Next
The post Crypto Market Outlook: Are Altcoins On The Verge Of 50% Crash? Here’s What To Expect Next appeared first on Coinpedia Fintech News
In his latest update, Michael Van De Poppe, a prominent analyst, delves into the current state of the altcoin market. Noting ongoing market consolidation, he highlights the diverse performances among altcoins, with some exhibiting strength and others yet to make substantial moves.
#Altcoins have multiple days/weeks correction while still in an uptrend
It might sound weird, but during this part of the cycle, the runs upwards last longer and are more steeper.
A consolidation at this point is a point of re-entry, before the run continues.
Here’s why. … pic.twitter.com/5CNN2ydOth
— Michaël van de Poppe (@CryptoMichNL) November 19, 2023
Parallels to Historical Trends: Echoes of 2015 and 2019
Van De Poppe draws parallels between the current market conditions and the end of 2015 and 2019. He emphasizes Ethereum’s impressive surge from $1 to $14 in 2015, foreshadowing a remarkable climb to $1,400 in 2017.
The analyst suggests that the potential for comparable returns still exists in the current cycle, hinting at projects with initial returns of 5-10x being in their early stages.
Correction Norms Amidst Promising Returns
Despite the potential for significant returns, Van De Poppe underscores the customary corrections during the initial stages of upward movements. Drawing on Ethereum’s 2020 DeFi summer as an example, he anticipates similar trends in 2024.
Comparing Ethereum’s past price action to Chainlink’s current movements, he observes a mild 20% correction, signaling a potentially clearer trend with a 30% correction. Van De Poppe highlights the opportunity to identify entry points during corrections.
Zooming in on Arbitrum, currently undergoing a corrective move while resting on support, Van De Poppe advises that altcoins experiencing 30-50% drops during this cycle should be viewed as opportunities for entry rather than causes for concern.
Strategic Positioning: Navigating Uncertainties for Altcoin Investment
Emphasizing strategic positioning, Van De Poppe suggests that, despite uncertainties, altcoins could still be favorable for investment. He touches on macroeconomic factors influencing Bitcoin’s continued rise and how they might impact altcoins.
Van De Poppe’s advice to investors is clear:
“This correction ends into higher timeframe support areas, which means that we’re likely continuing from here as those higher timeframe support areas are the areas to look for potential entries. Don’t be afraid, if an altcoin drops between 30-50% at this stage of the cycle, time to look for your entries.”
Filed under: Bitcoin - @ November 20, 2023 1:57 am