Altcoins
Is Altcoin Season Over or Has It Just Started? Crypto analyst Michaël van de Poppe decodes
As the crypto market anticipates the consequences of the fourth Bitcoin halving, notable changes are being observed in market dynamics, potentially paving the way for an altcoin surge, i.e. alternative season! Crypto analyst “Michaël van de Poppe” provided knowledge in the changing patterns of Bitcoin dominance and its implications for altcoins.
Analyzing the strength of Altcoin
Van de Poppe began by anticipating altcoin strength matching changes in Bitcoin’s dominance, signaling a potential rotation of capital away from Bitcoin and into alternative cryptocurrencies.
Van de Poppe highlighted the importance of monitoring Bitcoin dominance as a leading indicator of market sentiment and potential opportunities in altcoins. Currently, Bitcoin dominates at 50%, making it a buying opportunity for altcoins.
The analyst notes that the upward trend of Bitcoin dominance historically signals potential strength for altcoins when broken to the downside. Breaking this trend could pave the way for significant gains for altcoins, marking a possible shift in market dynamics.
Van de Poppe claims that altcoins have lost six percent of their value over the past three months compared to Bitcoin, even though the price of Bitcoin may have remained the same in terms of US dollars. He thinks this is a great opportunity for investors. Despite recent corrections, the analyst believes that downturns often signal prime entry points for altcoin investment.
Pay attention to entry and exit points
Additionally, the analyst further discussed the concept of market rotation, highlighting how capital flows between different segments of the crypto market based on changing investor preferences and market conditions. By observing BTC pairs and analyzing altcoin price trends, traders can identify potential entry and exit points to effectively capitalize on market movements.
Finally, he concluded by suggesting increasing returns by carefully shifting investments between altcoins whose prices have already risen significantly and those whose prices are poised to rise even further. He advises investors to focus on coins with significant movement and strategically consider profit rotation.
Is Altcoin Season Imminent?
Even though Van De Poppe is optimistic about the Altcoin season. The possibility of another altcoin season is in question as the altcoin season index rose above 75 earlier in 2024, only to fall to 25 after the halving event, indicating a focus on Bitcoin. However, despite Bitcoin’s dominance, altcoins have suffered larger losses recently, attributed to fear of selling pressure. Currently, the index sits at 39, suggesting that there is no impending altcoin season.