A widely followed crypto analyst says that smart contract platform Ethereum (ETH) and other altcoins are likely setting the stage for a big move to the upside.
Crypto trader Michaël van de Poppe suggests to his 665,600 followers on the social media platform X that the digital assets market is following a historical pattern before Bitcoin (BTC) halving events.
He says that just like in the past investor sentiment and altcoins are currently reaching cycle lows 10 months before the next BTC halving event, which is expected on April 20, 2024, and he believes just like in the past altcoins will soon turn bullish.
“Every rally is getting sold into, as people want to get out of the markets and tend to disbelief the markets have already started in a new bull cycle. Until the real move happens and people don’t get a chance to get into their positions. That’s why positioning is super important to do that in an early stage, which is when you start to take a look at price levels.
We’re 10 months prior to the Bitcoin halving. The period where sentiment is the lowest and altcoins are usually swimming around their cycle lows. Bitcoin dominance is peaking, and will not peak to that level anymore in this cycle. It happened in 2015, ten months prior to the halving. It happened in 2019, ten months prior to the halving. It happens in 2023, ten months prior to the halving.”
According to the analyst, the Bitcoin dominance chart is flashing bullish for altcoins as the the 200-week moving average (MA) and the 200-week exponential moving average (EMA) are starting to act like resistance just like they did months before Bitcoin’s 2020 halving event.
“A clear rejection at the 200-Week MA and EMA and looking to continue the fall, while altcoins are slowly picking up in their BTC pairs as a new cycle starts. While nobody expects it.”
He also says that several altcoin projects, like Ethereum and blockchain oracle Chainlink (LINK), have continued to develop during the bear market, setting the stage for massive rally events when the bull cycle takes off.
“Are projects still developing and did something change on that perspective? Well. The good part is that many fraudulent projects are washed out of the markets, while the good ones are constantly building further. Ethereum has swapped towards PoS (proof-of-stake) and is getting Ethereum ETFs (exchange-traded funds) based on futures in a month maximum. Chainlink has developed CCIP (Cross-Chain Interoperability Protocol) and I’m not even mentioning all the other progress in DeFi (decentralized finance), NFTs (non-fungible tokens) and more.”
Ethereum is trading for $1,733 at time of writing, up 5.1% in the last 24 hours. Chainlink is worth $6.23 at time of writing, up 4.5% in the last 24 hours.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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