Altcoins Poised for Breakouts Ahead of Bitcoin Halving, Says Analyst
In a surprising turn of events, a prominent cryptocurrency analyst suggests that altcoins may outperform Bitcoin (BTC) leading up to the highly anticipated Bitcoin halving.
Michaël van de Poppe, a well-known crypto trader, shares his insights with his extensive following of 666,400 users on the social media platform X. He specifically focuses on the Bitcoin dominance (BTC.D) chart, which measures the proportion of the total market cap held by BTC.
According to Van de Poppe, historical patterns indicate that the Bitcoin dominance chart could mirror the market structure observed from late 2019 to mid-2020, where it encountered resistance at the 200-week exponential moving average (EMA).
Traditionally, a bearish BTC.D chart is viewed as a positive signal for altcoins, suggesting that these alternative cryptocurrencies may experience faster value growth compared to Bitcoin.
Van de Poppe remarks,
“Despite the prevailing market sentiment indicating a continued decline, the decrease in Bitcoin dominance since testing the 200-week EMA aligns with previous cycles.”
As we are approximately 8-10 months away from the Bitcoin halving, Van de Poppe anticipates a surge in altcoins instead of a downward market trend.
While a 10% drop in Bitcoin’s value during September may cause a decline in the US dollar value of altcoins, historical corrections do not always follow this pattern.
Van de Poppe observes signs of strength as altcoin BTC pairs exhibit upward movements. If this trend continues, a breakout across various altcoins is imminent.
Ethereum Primed for a Rebound Against Bitcoin
Van de Poppe also believes that Ethereum (ETH) may have reached its low point against Bitcoin (ETH/BTC).
He cites the occurrence of a low point 252 days prior to the Bitcoin halving as evidence for a potential recovery for Ethereum.
In addition, Van de Poppe predicts that the US Securities and Exchange Commission will likely approve the Ethereum futures exchange-traded fund within the next month.
He concludes, “The bull market always begins when least expected, and this might be the opportune moment.”
Hot Take:
According to analyst Michaël van de Poppe, altcoins have the potential to outshine Bitcoin in the lead-up to the Bitcoin halving. Van de Poppe’s analysis of the Bitcoin dominance chart suggests that altcoins may experience a surge in value compared to BTC. He points out that the previous market cycle, characterized by a bearish BTC.D chart, resulted in altcoins gaining momentum. Van de Poppe also sees signs of strength in altcoin BTC pairs, indicating the possibility of widespread breakouts. Furthermore, he predicts a rebound for Ethereum against Bitcoin, based on historical patterns and the potential approval of an Ethereum futures exchange-traded fund by the U.S. Securities and Exchange Commission. This unexpected rally in altcoins aligns with the unpredictable nature of bull markets.
Disclaimer: The information provided here is not investment advice; it is for informational purposes only. It should not be considered as financial or investment advice or a recommendation to buy or sell any type of security.
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