Michaël van de Poppe, CEO and founder of MN Trading suggested in a recent tweet that altcoins are currently in the final stage of the bear market cycle, indicating the possibility of a bullish trend on the horizon. However, he acknowledged the pain and dwindling sentiment prevailing in the crypto sphere, with most of the interest gravitating towards Bitcoin, which still struggles to surpass certain key resistance levels.
Bitcoin’s Ongoing Struggle & A Prolonged Altcoin Bear Market
This prolonged bear market for altcoins, spanning approximately 29 months, has been a grueling ordeal for enthusiasts and investors. Notably, altcoins, including Chainlink, reached their peaks in August 2020 (BTC pair) and May 2021 in USD value. The impending Bitcoin halving and the potential introduction of a Bitcoin spot ETF have further complicated the market dynamics, especially against a backdrop of geopolitical turbulence.
As gold prices rise due to global uncertainties, Bitcoin seems poised to benefit from a similar trend. The endorsement of BTC by prominent figures, such as Blackrock’s CEO, as a digital version of gold has instilled confidence in the cryptocurrency.
Van de Poppe emphasized that Bitcoin usually leads the market, with altcoins gaining traction when confidence returns. Notable altcoins like Chainlink, Solana, and Injective have already shown upward trends. Ethereum, however, has faced challenges with the delay of the ETH ETF Futures launch and ongoing corrections against the Bitcoin pair.
The prevailing sentiment among the general public remains cautious, with many not realizing the massive potential of cryptocurrency at this moment. Van de Poppe compared the current situation to 2015-2016, when the market slowly began its ascent towards the Bitcoin halving, indicating a possible turning point for altcoins. According to historical data, the months leading up to the Bitcoin halving have often marked the bottom for altcoins.
Analyst Mags, in a separate tweet, highlighted the buying opportunities that BTC bear markets offer. Two significant buying opportunities emerge around 500 days and 180 days before the halving event, with the second dip historically never falling below the price of the first buying opportunity. These opportunities have consistently generated substantial returns, even during unforeseen events like a black swan.
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