Are Altcoins Doomed? Here’s What’s Next for the Crypto Markets, According to Trader Michaël van de Poppe
Crypto analyst and YouTuber Michaël van de Poppe is sharing his altcoin trading strategy as Bitcoin gains ground against the asset class.
After briefly breaking below $32,000 earlier in the week, Bitcoin has since shot back up in value and is trading at $36,226.87 at time of writing, according to CoinGecko.
That bullish move has caused altcoins to lose relative ground to BTC as traders swap their smaller market-cap assets for Bitcoin, Van de Poppe tells his 105,000 YouTube subscribers.
The trader notes that $35,000 is a a very critical level for Bitcoin to hold in order for BTC to continue its momentum upwards. If Bitcoin breaks above the $39,200-$40,800 price zone, Van de Poppe thinks it will begin a new bullish wave. However, he predicts it will first consolidate and test $35,000, then continue its upwards ascent.
Ethereum (ETH) and Cardano (ADA) both had a “healthy corrective move” in their Bitcoin pairs in the wake of BTC’s price surge, Van de Poppe explains. As top altcoins correct, Van de Poppe now is not the time he would sell his alternative assets for BTC.
“Does it mean that altcoins are dead? Does it mean that we should be swapping altcoins towards Bitcoin at this stage? No, I don’t think you should. But you should be realizing that the effect of the altcoins right now is because Bitcoin is getting some momentum…
So what is most likely going to happen? Bitcoin consolidating, altcoins bouncing back up, some altcoins continuing the momentum.”
However, he notes that if Bitcoin makes a bullish break towards the $40,000 level in the short term, it could have a negative relative impact on altcoins.
“I would not be surprised if Bitcoin breaks above $40,000 and then in one candle goes to $49,000. And if that happens that is going to cause pain to the altcoins…
So inside this range-bound construction probably altcoins will start pacing up with Bitcoin. But the moment that it’s eager to start breaking out of this construction I think altcoins will have some more pain, the final pain…”
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The post Are Altcoins Doomed? Here’s What’s Next for the Crypto Markets, According to Trader Michaël van de Poppe appeared first on The Daily Hodl.
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