As Bitcoin takes a breather, altcoin mania and an overall breakout are noticeable, analysts predict. Here’s why:
A widely respected cryptocurrency analyst believes altcoins will soon take center stage as Bitcoin (BTC) enters a period of consolidation.
Analyst Michaël van de Poppe tells his 684,700 followers on social media platform
Van de Poppe said the ETF is bullish on Bitcoin for the long term, but it will take time for tens of billions of dollars of capital to flow into BTC. For now, Bitcoin is likely to enter a period of consolidation as deep-pocketed investors cycle capital and traders wait for a new catalyst, the analyst said.
“However, in the short term, Bitcoin price is likely to consolidate and take a brief breather. Here are some reasons for this:
Switching from Grayscale Bitcoin Trust (GBTC) to an ETF requires selling BTC.
Institutions switch from spot Bitcoin to ETFs to comply with regulatory frameworks.
Speculators and self-selling firms built on the hype sell (or stop) their positions when they realize the hype is over.
Until there is a new event, the hype itself stops the sudden euphoria of buying real assets now.”
As Bitcoin cools, Van de Poppe believes altcoins will start to make their move. Bitcoin’s consolidation provides a time window for altcoins to outperform BTC and rise, according to analysts.
“Altcoins have struggled over the past few months since Bitcoin surged from $25,000 to $50,000. It is very likely that we will see a period of consolidation in Bitcoin, and there will probably be a relatively prolonged period of consolidation (3-6 months) before new highs occur. In the meantime, altcoin mania and general breakthroughs are the next steps.”
The trader also shares a chart that suggests BTC will consolidate between $39,000 and $50,000 for most of 2024, giving the altcoin plenty of time to trigger a breakout rally.
Source: Michaël van de Poppe/X
As of this writing, Bitcoin is worth $42,429.
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As Bitcoin takes a breather, Altcoin mania and an overall breakout are noticeable, analysts predict. Here’s why it first appeared on The Daily Hodl
