Altcoin mania and breakouts across the board are on the horizon as Bitcoin takes a breather, an analyst predicts – here's why
A widely followed crypto analyst believes altcoins will soon take center stage as Bitcoin (BTC) enters a period of consolidation.
Analyst Michaël van de Poppe shares with his 684,700 followers on the social media platform
Van de Poppe says that while the ETFs are bullish on Bitcoin in the long term, it will take time for tens of billions of dollars of capital to flow into BTC. The analyst believes Bitcoin is likely to enter a period of consolidation for now, as wealthy investors shift capital and traders wait for a new catalyst.
“However, in the short term, the price of Bitcoin is likely to consolidate and take a breather. Several reasons for this:
GBTC (Grayscale Bitcoin Trust) moving to the ETF requires a sell-off in BTC.
Institutional rotation from spot Bitcoin to ETF to comply with regulatory framework.
Hype-based speculators and proprietary trading firms sell their positions (or are stopped out) because the hype is over.
The hype itself stops the sudden euphoria of buying the actual asset for now until there is a new event.”
As Bitcoin cools down, Van de Poppe believes altcoins will be on the move. According to the analyst, Bitcoin’s consolidation gives altcoins time to rise and outperform BTC.
“In recent months, altcoins have suffered from the sudden strength of Bitcoin, which rose from $25,000 to $50,000. It is very likely that we will see a period of consolidation in Bitcoin, and likely a relatively long period of consolidation (three to six months) before new highs are reached. In between, altcoin mania and a broad-based breakout is the next step.”
The trader also shares a chart that suggests BTC will consolidate between $39,000 and $50,000 for most of 2024, giving altcoins plenty of time to trigger breakout rallies.
Source: Michael van de Poppe/X
At the time of writing, Bitcoin is worth $42,429.
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