A widely followed crypto analyst says altcoin traders should keep an eye on the market as king crypto Bitcoin (BTC) consolidates.
Looking at BTC, top analyst Michaël van de Poppe predicts Bitcoin must break through $29,200 before it can reach new highs.
“The thing is that;
Bitcoin reached $27,400 and gives a great response.
I would still argue that possibly $26,800 is an entry spot.
What do we need now? Flip $27,800 for support and break $29,200.
$29,200 is the essential breaker before new highs.”
With BTC trading for $27,150 at time of writing, down 3.5% in the last 24 hours, Van de Poppe claims that he needs more info before he will confirm a trend reversal.
“Well, Bitcoin reached $26,800 and that was one of my entry points.
Liquidity taken from both sides, which means the chop continues.
This also means, trend remains to be down, so we need additional confirmation for a reversal.
Leverage is giving the markets these moves.”
Looking at altcoin market cap dominance, a metric that measures altcoins’ share of the crypto market, Van de Poppe sees the digital asset class as nearly reaching a cycle low.
“We’re getting close now on altcoins.
First level reached.
Starting accumulation here and sell in 1-2 years makes a lot of sense.”
Diving deeper in a YouTube update, the trader tells his 163,000 subscribers that altcoin dominance is largely dependent on what Bitcoin does next.
“We’ve had a bounce here, which was quite comparable to the bounce that we’ve had two years ago. Now, as we are getting one year before the whole thing, we’re getting close to a period of a potential bottom on the altcoins. We’re getting close to a potential weekly bullish divergence, and we are getting close to the case where you’re looking to estimate or accumulate your positions because the Bitcoin pairs are getting so undervalued to what Bitcoin’s price is doing that people will be jumping over from Bitcoin towards altcoins.
And what is needed for that? We need Bitcoin’s confidence to get back. So, if Bitcoin is going to break through $30,000, and that is your trigger for all coins to start shooting off, then secondly, if Bitcoin breaks to $30,000, most likely altcoins will have one more correction, which will bring the altcoins into this region here [between $42,000-$45,000]… But if Bitcoin finalizes its run around those regions, that is when altcoins start to finally kick-off. So Bitcoin needs to break $30,000, then the confidence in the market starts to get back.”
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