Bitcoin is on a massive uptick, reaching above $29,000, breaking all interim resistance. Meanwhile, the altcoins continue to trade with a small uptick, indicating the flow of liquidity from the altcoins to Bitcoin. With the BTC price having received a tremendous bullish push as major players such as Blackrock, Fidelity, Deutsche Bank, etc. have entered the crypto space, especially Bitcoin, altcoins are expected to take more pain in the coming days.
Each price cycle goes through multiple phases, which means different price actions and sentiments. Based on these phases, the beginning and end of a bull or bear market is determined. The investor’s feelings also greatly influence the value of the token as they go through different phases such as hope, belief, euphoria, denial, panic, etc., and many more. Currently, the altcoins in general have entered a depression phase and are expected to quickly switch to disbelief.
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Over time, the majority of altcoins will be able to fall more rapidly, as predicted by top analyst Michael van de Poppe.
The analyst here compares the altcoin market cap to the traditional market cycle. Interestingly, the trend seems to have entered the depression phase at the moment. Increased selling pressure and panic selling could cause sentiment to shift to disbelief. This is when the bottom of the rally can be reached, after which a gigantic recovery phase can begin.
Bitcoin and the majority of altcoins followed the chart closely, making it quite easy to determine the next plan of action. Despite this, many analysts and veterans believe that now is a good time to buy and hold altcoins. They are quite confident that Bitcoin’s liquidity flow could soon seep into the altcoins, causing a healthy Altseaon very soon.