Analyst Michaël van de Poppe Suggests Altcoins Are Poised for Widespread Breakouts

A highly-regarded cryptocurrency analyst anticipates that altcoins may outperform expectations and experience a rally preceding the Bitcoin (BTC) halving event.

In a message to his 666,400 followers on the X social media platform, crypto trader Michaël van de Poppe has shared his perspective on the Bitcoin dominance (BTC.D) chart, which monitors the portion of the total cryptocurrency market cap attributed to Bitcoin (BTC).

Van de Poppe suggests that the Bitcoin dominance chart could follow a pattern reminiscent of the late 2019 to mid-2020 market structure when it respected the 200-week exponential moving average (EMA) as a resistance level. This historical observation carries significance because traders generally view a bearish BTC.D chart as a favorable signal for altcoins, indicating the potential for altcoins to appreciate in value more rapidly than BTC.

Van de Poppe elaborates, stating, "The overall sentiment still leans towards a possible market decline. However, the declining Bitcoin dominance since testing the 200-week EMA aligns with previous cycles. As we're once again 8-10 months away from the Bitcoin halving, we could anticipate an upswing in altcoins rather than a bearish market."

He goes on to address concerns about potential drops in altcoin values if Bitcoin falls by another 10% in September. Van de Poppe highlights that historical corrections have shown altcoin BTC pairs rebounding, signifying a subtle display of strength. If this trend persists, it could indicate the possibility of widespread altcoin breakouts in the near future.

Van de Poppe expresses optimism regarding Ethereum (ETH) in its pairing with Bitcoin (ETH/BTC). He suggests that there is a strong likelihood that the low point for Ethereum relative to Bitcoin has already been reached. This observation aligns with the fact that this low occurred approximately 252 days before the upcoming Bitcoin halving.

Additionally, he points out a potential catalyst for Ethereum's upward trajectory—the anticipated approval of an Ethereum futures exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Van de Poppe suggests that this approval could be confirmed within the next month.

He concludes by emphasizing the unpredictability of bull markets, noting that they often commence when least expected. This, he suggests, could be the period when Ethereum begins to exhibit a bullish trend.

Based on the trader's chart analysis, it seems that he anticipates the ETH/BTC pair to climb to a level of 0.06992 BTC, which would equate to a value of $1,799.

Currently, as of the time of writing, the ETH/BTC pair is trading at 0.06303 BTC, corresponding to a value of $1,621. This suggests that, according to the trader's analysis, there is potential for further upside in the value of Ethereum (ETH) relative to Bitcoin (BTC) in the near future.

Sep 06, 2023