A widely followed cryptocurrency analyst believes that altcoins could defy expectations and rally ahead of the Bitcoin (BTC) halving.
Crypto trader Michaël van de Poppe tells his 666,400 followers on the social media platform X that he’s looking at the Bitcoin dominance (BTC.D) chart, which tracks how much of the crypto total market cap belongs to BTC.
According to the analyst, the Bitcoin dominance chart could repeat its late 2019 to mid-2020 market structure when it respected the 200-week exponential moving average (EMA) as resistance.
Generally, traders see a bearish BTC.D chart as a positive sign for altcoins as it suggests that alts may rise faster in value than BTC.
Says Van de Poppe,
“Well, the overall sentiment is still that the markets are continuing to fall, which might be possible. On the other hand, Bitcoin dominance is down since the test of the 200-week EMA, which is in line with the previous cycles, too.
That means that, as we’re again 8-10 months before the halving of Bitcoin, we can expect to see a surge in altcoins, rather than a downwards moving market.
And yes, of course, if Bitcoin falls another 10% in September, the US dollar values of altcoins will start to fall too. But did we see that happen in the previous corrections?
Not entirely. We’ve seen a case where the BTC pairs of altcoins are bouncing up. That’s a slight sign of strength. If that continues to happen, we’re on the edge of having breakouts on altcoins across the board.”
Van de Poppe also says he is bullish on Ethereum (ETH) against Bitcoin (ETH/BTC).
“There’s a high chance that we’ve seen the low on Ethereum against Bitcoin as well, as we’re having the case of the low 252 days prior to the halving of Bitcoin.
Add to that the case that we’re most likely going to see an approval of the Ethereum futures exchange-traded fund [by the U.S. Securities and Exchange Commission] to be confirmed in a maximum of one month from now.
The bull market always starts when nobody expects it and, this might be the period.”
Looking at the trader’s chart, he appears to predict ETH/BTC rising to 0.06992 BTC worth $1,799.
At time of writing, ETH/BTC is trading for 0.06303 BTC worth $1,621.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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