Kryptocurrency analyst Michael van de Poppe, who is closely followed, made a surprising comment that altcoins could defy expectations and the largest cryptocurrency Bitcoin (BTC) could rally before its block reward halving, despite current market conditions.
According to the Analyst, All Altcoins Could Experience a Big Explosion
Kryptocurrency analyst Michael van de Poppe pointed out that he closely monitors the Bitcoin Dominance (BTC.D) chart on the social media platform X, which shows how much of the total market value of the cryptocurrency market belongs to BTC. According to the analyst, the Bitcoin Dominance chart could repeat the market structure from the end of 2019 to the middle of 2020, after confirming the 200-week Exponential Moving Average (EMA) as resistance and falling.
Generally, investors and traders consider the decline of the BTC.D chart as a positive sign for altcoins, as it indicates that altcoins can gain value faster than BTC. Van de Poppe commented on this situation:
The overall sentiment is still that markets continue to fall, which is possible. On the other hand, the Bitcoin Dominance chart has been falling since testing the 200-week EMA, which is consistent with previous cycles. This means that instead of a downward movement in altcoins in the months leading up to Bitcoin’s block reward halving, we may expect an increase.
Of course, if Bitcoin drops by 10% in September, the values of altcoins against the US dollar will also start to decline, but have we seen this in previous corrections? Not exactly. We have seen BTC/altcoin pairs bounce up. This is a slight sign of strength. If this continues, we are on the verge of significant breakouts in all altcoins.
Expecting a Rise in ETH/BTC
Van de Poppe also stated that the largest altcoin Ethereum (ETH) is rising against Bitcoin (ETH/BTC), saying “Just as we saw the dip level 252 days before Bitcoin’s block reward halving, we are likely to see the dip level for Ethereum against Bitcoin as well. Add to this the possibility of the approval of the Ethereum futures exchange-traded fund by the US Securities and Exchange Commission (SEC) within a month. Bull markets always start at a time no one expects, and we may be in such a period right now.”
Looking at the chart shared by the analyst, it can be seen that ETH/BTC is expected to rise to 0.06992 BTC, equivalent to $1,799. At the time of writing this article, the ETH/BTC pair is trading at 0.06303 BTC, equivalent to $1,621.
