Altcoins, or alternative cryptocurrencies, have been in a “depression phase” with very low prices for a significant period of time. However, according to crypto analyst Michaël van de Poppe, these altcoins are now ready to start trending upwards. Van de Poppe, who has gained a following of 666,000 on social media platform X, believes that the numerous applications for crypto exchange-traded funds (ETFs) indicate coming strength for digital assets.
While it may sound repetitive, Van de Poppe suggests that for most altcoins, the lows might be in or close to being in. Additionally, he highlights that the interest in cryptocurrencies is at the same levels as in 2020, and Bitcoin (BTC) pairs are slowly breaking out. Van de Poppe also points out some important indicators that suggest the potential for altcoins to trend higher: the upcoming Bitcoin spot ETF, applications for Ethereum spot ETFs, and the imminent launch of Ethereum futures ETFs. All of these factors indicate increasing institutional interest in the market.
To support his analysis, Van de Poppe refers to the Wall Street Cheat Sheet, a chart that illustrates the psychological phases that investors go through during volatile market cycles. According to this theory, altcoins are currently in the “depression phase,” where prices are at extreme lows. Typically, this phase is followed by the “disbelief” phase, where prices begin to rise slightly but most market participants do not see any significance in it.
Shifting the focus to Bitcoin, Van de Poppe suggests that the price needs to leave the range between $24,500 and $26,800. If the price breaks above $26,800, it would indicate a potential breakout, and Van de Poppe would become a massive buyer. On the other hand, if the price drops to the range of $24,500 to $25,000, he would also be a heavy buyer, considering it a discount. As of now, Bitcoin is trading at $25,873.
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It is important for investors to exercise caution and not get “chopped out” in the current range of Bitcoin. Van de Poppe explains that this range could last for several more weeks before a potential fake-out and the start of a real move. Therefore, it is crucial to closely monitor price movements and wait for a clear breakout before making investment decisions.
In conclusion, altcoins are showing signs of potential upward trends after a long period of low prices. Van de Poppe’s analysis indicates that the interest in cryptocurrencies remains high, and the introduction of various ETFs, particularly in the case of Bitcoin and Ethereum, suggests increasing institutional involvement in the market. As such, investors should closely monitor these developments and assess the potential for altcoins to rebound. However, it is essential to exercise caution and wait for clear breakout signals before making investment decisions.
