In a recent YouTube video, the popular cryptocurrency expert Michael van de Poppe discussed the current market perception, events and opportunities. Although the market has been bearish in this period, this is seen as the best time for planning. Some of the altcoins are already exhibiting life and such is a good sign for potential investors.
The update draws parallels between the current bearish mood and previous market declines. However, these periods, particularly the ones that seem unfavorable, are usually the best time for those with a good strategy. The Fear and Greed Index which ranges from 0 to 100 to determine the market perception is currently at 54. This shows that majority of the investors are still reluctant and neutral, and are not eager to invest in the crypto market at the moment.
Crypto Market at a Crossroads
Bitcoin and Ethereum are both at crossroads right now. Ethereum, with the launch of its ETF, and the growing ecosystem has reached a market cycle low against Bitcoin. This decline is partly attributed to a major Ethereum liquidation which also put pressure on Bitcoin to new lows. However, there is always a chance for the market to recover, when there are important events scheduled to occur soon.
Several upcoming events may influence the shift of the market as well. Some of the drivers that have been identified include the release of $16 Billion by FTX in the next quarter and the meeting of the Federal Reserve on 18th September. If the Fed cuts rates it will inject more liquidity into the market and this will translate to positive gains in the altcoins and may signal a rebound.
Bitcoin Consolidation Signals Potential Breakout
Another significant aspect of the current Bitcoin price is the consolidation. The market is looking like it is about to break out. If Bitcoin could go through the $62,000 mark then a record high could be on the horizon. Although if the price of cryptocurrency breaks through the $56,000 support level, there may be further declines which may be extended to altcoins.
Nevertheless, the trade recommendation is to continue to stick to the long-term perspective. Increased investments are recommended in the Ethereum environment and new DeFi projects are noted as the most promising.
Although the crypto market is presently bearish, it tends to rally and recover the lost ground in a very short time even if it takes years to do so. Van de Poppe revealed that the plan is still to continue with the current strategy because it is assumed that the market will eventually be favorable to those investors who are patient and well prepared.
Currently the market is in the bearish trend and there are openings to be made. The investors are advised to have at least a roadmap especially for the altcoins, as well as the events that may bring a reversal in the market.
Related: https://www.tronweekly.com/bitcoin-ethereum-short-record-lows-on-bitfinex/