A widely followed crypto analyst is diving into the crypto markets as Bitcoin (BTC) plateaus and altcoins see “massive liquidations.”
Crypto trader Michaël van de Poppe tells his 680,800 followers on the social media platform X that altcoins underwent their biggest day of liquidations yesterday in the past two years.
“Massive liquidations today, the largest for Altcoins in the past two years.
Unlikely it will happen again tomorrow or the day after, but it shows a few important concepts;
– Avoid excessive risk-taking with leverage.
– Have low-limit bids at all times.
– Be patient.”
Looking specifically at the altcoin Chainlink (LINK), Van de Poppe says the blockchain oracle is unlikely to retrace much further.
“During yesterday’s cascade of the altcoin liquidations, entry points on LINK were hit.
It’s always the best to remain patient. If you do, you’ll be rewarded, similarly with this.
I don’t think Chainlink will go much deeper; as a matter of fact, I think we’ll trend up.”
Taking a peek at the top altcoin Ethereum (ETH), the trader thinks the smart contract platform still has further to fall when trading against Bitcoin.
“Ethereum is still eager to find a bottom in the BTC pair.
This means that, pre-halving, we’re likely going to swap from strength on BTC to strength on Ethereum.”
Meanwhile, the analyst says BTC is likely to consolidate as the world awaits the approval or denial of a spot BTC exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
“Bitcoin is still waiting for a potential approval of the Spot Bitcoin ETF.
Standing behind my thesis that we’re consolidating inside a range between $38-50K.”
Featured Image: Shutterstock/DanieleGay/Andy Chipus