Altcoins are Dead? Not So Fast, Says Prominent Analyst

In a recent Twitter thread, famous Twitter analyst and technical analysis expert Michaël van de Poppe (@CryptoMichNL) shed light on the current state of the cryptocurrency market, particularly focusing on Bitcoin (BTC) dominance and its implications for altcoins. Van de Poppe’s insights offer a nuanced perspective when the markets show mixed signals.

Bitcoin Dominance: A Contrarian Indicator for Altcoins

“The markets might not be feeling great, but Bitcoin dominance shows that there’s actually some momentum going on with the altcoins,” says van de Poppe. Bitcoin dominance is a metric that measures Bitcoin’s market capitalization as a percentage of the total cryptocurrency market cap. According to the well-known trader, this indicator serves as a reliable gauge for the strength or weakness of altcoins.

He further elaborates that the best investment decisions often come when investors are the least confident. “Additionally, you’ll understand that the best investment decisions are made when you feel the least confident about them,” he adds. This counterintuitive advice could serve as a guiding light for investors navigating the volatile crypto markets.

Historical Cycles Point to Altcoin Surge

Van de Poppe parallels the current market conditions and those observed in previous cycles, specifically 8–10 months before Bitcoin halvings in 2015 and 2019. “If you add some more flavor to it, you can see that 8–10 months before the halving, the altcoins start to surge in their BTC pairs, and the BTC dominance starts to fall,” he notes.

This historical pattern suggests that altcoins are poised for a significant uptick in their Bitcoin pairs, indicating a potential bull run for these alternative digital assets. The falling Bitcoin dominance aligns with this view, signaling increased market interest in altcoins

Ethereum Shows Signs of Bottoming Out

In the same thread, van de Poppe also touched upon Ethereum, the second-largest cryptocurrency by market cap. “In the meantime, we can still see that Ethereum is consolidating in its BTC pair. No weakness, no new lows, but bottoming out 10 months before the halving seems legit there as well,” he states.

This observation implies that Ethereum is currently in a consolidation phase against Bitcoin, showing no signs of weakness or new lows. The timing aligns well with the 10-month pre-halving window, suggesting that Ethereum could also be gearing up for a bullish phase.