The crypto market is not where it should be right now, at least in terms of prices – altcoins specifically – that some investors believe should be up, as always.
Altcoins, otherwise known as any digital assets excluding Bitcoin, plummeted to new lows against Bitcoin last week. This decline is steep and has been gaining attention from analysts. Two notable figures, Michael van de Poppe and Moustache, shared their views on the situation.
Deciphering The Current State Of Altcoins
One of the most respected crypto analysts, Michael van de Poppe, has aired his concern over the current state of altcoins. He wrote in a recent post on X that most altcoins were facing severe drops—a 60% to 70% takedown from peak prices in March 2024—which, he said, had met widespread unease among investors.
#Altcoins have been printing a new low against Bitcoin during the past week.
However, the bottoming process is still ongoing.
If next week is going to continue the moment of altcoins after the bounce, then it starts to look great. pic.twitter.com/iojvHATtfi
— Michaël van de Poppe (@CryptoMichNL) August 11, 2024
Van de Poppe thinks the market is approaching its bottom. Things may seem gloomy, but he is of the opinion that the next few weeks are critical. The question will be whether altcoins can find a bottom and then create a base for recovery.
If the downtrend continues, things will get worse before they get better. This cautious stance by Van de Poppe reflects his reputation for delivering a no-nonsense analysis, fearless of meeting the strong and bold realities brought by the trends of the market.
Total crypto market cap at $2 trillion on the 24-hour chart: TradingView.com
Analyst Shares A Different Perspective
On the other side, analyst Moustache has a differing view. In a recent X post, Moustache shared his analysis on the current altcoin market cycle. Comparing it with previous cycles, he noted that while history may not exactly repeat itself, it tends to rhyme.
#Altcoins
History doesn’t repeat itself, but it often rhymes.
The cycle for the Totalmarketcap still looks very similar to the last one.
Did you know that a descending broadening wedge is currently forming below the 2021 resistance/ATH?
They don’t shake me out.
Bullish. pic.twitter.com/1VK4vMrYV1
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) August 10, 2024
Based on the prognosis of Moustache, the total altcoin market capitalization is demonstrating a possible descending broadening wedge pattern—a formation that stays within the support-resistance range of 2021, which was the peak period for many altcoins.
Source: TradingView
For Moustache, markets appear erratic at the moment but there might be a bullish signal in play. In the past, he notes that these types of altcoin structures have typically led to large rallies. He goes on to argue that the market is reaching an almost inevitable tipping point right now, which he believes will launch a massive upswing.
The Road Ahead
The broader economic climate compounds this very volatile market. Fears of recession and further regulatory uncertainties over what the future may hold for such disruptive technologies as cryptocurrencies, among others, make things all the more complex. In that sense, it’s not one thing or another; it is just that the composite makes the turbulence—felt by altcoins—a “perfect storm” compounding challenges facing investors.
At such a time, investors need to be informed and strategic. Panic selling is often counterproductive. The process requires patience, in-depth research, and a willingness to take risks. It is also advisable to diversify one’s investments rather than placing all the proverbial eggs in one basket.
Featured image from Kriptokoin.com, chart from TradingView
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