A widely-followed cryptocurrency analyst believes that altcoins could defy expectations and rally before Bitcoin’s (BTC) halving.
Crypto trader Michaël van de Poppe tells his 666,400 followers on the social media platform X that he looks at the Bitcoin dominance chart (BTC.D), which tracks how much of the total crypto market cap belongs to BTC.
According to the analyst, the Bitcoin dominance chart could repeat its market structure from late 2019 to mid-2020 if it respected the 200-week exponential moving average (EMA) as resistance.
In general, traders see a bearish BTC.D chart as a positive sign for altcoins, as it suggests that alts may appreciate faster than BTC.
Says Van de Poppe,
“Well, the general sentiment is still that the markets continue to fall, which could be possible. On the other hand, Bitcoin’s dominance has declined since the test of the 200-week EMA, which is also in line with previous cycles.
That means that now that we are already 8 to 10 months before Bitcoin’s halving, we can expect an increase in the number of altcoins, rather than a downward movement of the market.
And yes, of course, if Bitcoin falls another 10% in September, US dollar values of altcoins will also begin to decline. But have we seen that happen in previous corrections?
Not quite. We have seen a case where the BTC pairs of altcoins bounce up. That’s a small sign of strength. If that continues to happen, we will be on the brink of outbreaks on altcoins across the board.”
Van de Poppe also says he is bullish on Ethereum (ETH) versus Bitcoin (ETH/BTC).
“Chances are that we have also seen Ethereum’s low against Bitcoin as we are dealing with the low 252 days prior to Bitcoin’s halving.
Add to that the case where we will most likely see an approval of the Ethereum futures exchange-traded fund [by the U.S. Securities and Exchange Commission] will be confirmed within a maximum of one month.
The bull market always starts when no one expects it, and this could be the time.”
Looking at the trader’s chart, he seems to predict that ETH/BTC will rise to 0.06992 BTC worth $1,799.
At the time of writing, ETH/BTC is trading for 0.06303 BTC worth $1,621.
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Generated image: Midjourney