A very striking altcoin statement came from renowned analyst and technical expert Michaël van de Poppe in a recent Twitter message. In addition, Poppe provides valuable information about the current state of the cryptocurrency market. He primarily looks at Bitcoin (BTC) dominance and its effects on altcoins. These insights provide a nuanced perspective, especially at times of mixed signals in the crypto world.
Altcoins are dead? The dominance tells a different story.
The markets might not be feeling great, but Bitcoin dominance shows that there's actually some momentum going on with the #Altcoins.
It's similar in previous cycles. Eight-ten months prior to the halving. 👇
The… pic.twitter.com/mcDjoNrQ5j
— Michaël van de Poppe (@CryptoMichNL) September 2, 2023
Bitcoin dominance: An important indicator for altcoins
Despite the uncertainties in the market, van de Poppe points out that Bitcoin dominance is a very important criterion. It measures Bitcoin’s market cap as a percentage of the total cryptocurrency market cap. According to the expert, this indicator can reliably measure the strength or weakness of altcoin projects. He suggests there may be some underlying momentum in altcoins, even if the markets seem turbulent.
He also states that the best investment decisions are often made when investors feel the least confident. Accordingly, Poppe offers an intuitive investment tip. This unconventional wisdom can provide valuable guidance to those navigating the volatile Bitcoin and cryptocurrency landscape.
Historical models predict altcoin volatility
Van de Poppe looks at current market conditions and what happened in previous cycles. Accordingly, he draws parallels between the conditions seen in the 8-10 months leading up to the Bitcoin halving events in 2015 and 2019. He states that during these periods, the altcoin world started to rise in Bitcoin pairs. On the other hand, he states that this situation coincides with a decrease in Bitcoin dominance.
This historical pattern shows that cryptocurrencies could be on the cusp of a significant uptrend in Bitcoin pairs. On the other hand, this indicates a potential bull run for alternative digital assets. The waning Bitcoin dominance further supports the idea that there is increasing market interest in the altcoin world.
Ethereum’s flexibility
In the same Twitter thread, van de Poppe also discusses Ethereum, the second largest cryptocurrency by market cap. He highlights that the altcoin Ethereum is currently in a consolidation phase against Bitcoin. More importantly, there are no weaknesses or new lows to be seen. This observation is in line with the 10-month pre-halving perspective, which points to the possibility of a bullish phase for Ethereum.
When we look at Kriptokoin.com, Poppe points out that there are altcoin opportunities ahead. Van de Poppe’s analysis provides optimism for altcoin investors. While market conditions seem uncertain, underlying indicators and historical patterns point to potential growth and opportunities for altcoins, including Ethereum.
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