Anika Begay
The cryptocurrency market is not where it should be at the moment, at least in terms of prices (particularly altcoins) which some investors believe should rise, as always.
Altcoins, otherwise known as digital assets outside of Bitcoin, have fallen to new lows against Bitcoin over the past week. This decline is steep and has attracted the attention of analysts. Two prominent figures, Michael van de Poppe and Moustache, have shared their thoughts on the situation.
Deciphering the Current State of Altcoins
One of the most respected cryptocurrency analysts, Michael van de Poppe, has expressed his concern about the current state of altcoins. He wrote in a recent post on X that most altcoins were facing severe declines, a 60%-70% drop from their March 2024 highs, which he said was met with widespread unease among investors.
#Altcoins recorded a new low against Bitcoin over the past week.
However, the process of reducing the minimum value is still ongoing.
If the altcoin momentum continues next week after the bounce, then things are starting to look good. photo.twitter.com/iojvHATtfi
— Michaël van de Poppe (@CryptoMichNL) August 11, 2024
Van de Poppe thinks the market is nearing the bottom. Things may look grim, but he believes the next few weeks are critical. The question will be whether altcoins can find a bottom and thus create a basis for recovery.
If the downtrend continues, things will get worse before they get better. Van de Poppe’s cautious stance reflects his reputation for providing no-nonsense analysis, unafraid to meet the hard and bold realities that market trends bring.
Total crypto market cap at $2 trillion on the 24-hour chart: TradingView.com
The analyst shares a different perspective
On the other hand, analyst Moustache has a different take. In a recent post on X, Moustache shared his analysis of the current altcoin market cycle. Comparing it to previous cycles, he noted that while history may not repeat itself exactly, it tends to rhyme.
History doesn’t repeat itself, but it often rhymes.
The Totalmarketcap cycle still looks very similar to the previous one.
Did you know that a widening falling wedge is forming below the 2021 resistance/ATH?
They don’t shake me.
Optimistic. photo.twitter.com/1VK4vMrYV1
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) August 10, 2024
According to Moustache’s prognosis, the total market capitalization of altcoins is showing a possible falling broadening wedge pattern, a formation that remains within the 2021 support-resistance range, which was the peak period for many altcoins.
Source: TradingView
Source: TradingViewFor Moustache, markets seem choppy at the moment, but there could be a bullish signal at 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 inflection point right now, which he believes will kick off a massive rally.
The road ahead
The broader economic climate compounds this very volatile market. Recession fears and further regulatory uncertainty about what the future might hold for disruptive technologies like cryptocurrencies, among others, make things even more complex. In that sense, it’s not one thing or the other; it’s just that the composite makes the turbulence felt by altcoins a “perfect storm,” compounding the challenges investors face.
In such a time, investors need to be informed and strategic. Panic selling is often counterproductive. The process requires patience, thorough research, and a willingness to take risks. It is also advisable to diversify your investments rather than putting all your proverbial eggs in one basket.
Featured image from Kriptokoin.com, chart from TradingView
