A closely followed analyst believes that the crypto markets are gearing up for a period when altcoins significantly outperform Bitcoin (BTC).
In a new strategy session, trader Michaël van de Poppe tells his 163,000 YouTube subscribers that the Bitcoin dominance chart (BTC.D) has likely peaked for now and looks poised to roll over.
The BTC.D chart tracks how much of the total crypto market capitalization belongs to the king crypto. A falling BTC.D chart suggests that altcoins are printing gains at a more rapid rate than Bitcoin itself.
According to Van de Poppe, Ethereum’s (ETH) recent Shanghai upgrade, which now allows stakers to withdraw their coins, is likely the signal that heralds a fresh altseason.
“If we’re looking at the Bitcoin dominance, we can arguably say that we have been reaching the crucial level at 50 (percent)… I was thinking maybe we can go a little bit higher but then I realized that Shanghai upgrade took place, which I didn’t include in the previous update.
I think that we’re on the edge of having a correction on the Bitcoin dominance. I think that we’re peaking here, and that is going to result into a fall in the coming period. As the last time during the Ethereum merge, it was bottom. Now, it’s probably the peak.”
Van de Poppe believes that his expected alteason could run for a few months before Bitcoin takes a breather.
“So we have a window of at least a few months that we’re going to do well when it comes to the altcoins before Bitcoin is going to correct, which means I’m not inducing shorting at all. I think buying the dip and longing is the way to go.”
At time of writing, the BTC.D chart stands at 47.16%, below Van de Poppe’s key level.
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