A widely respected cryptocurrency analyst believes altcoins will soon take center stage as Bitcoin (BTC) enters a period of consolidation.
Analyst Michaël van de Poppe tells his 684,700 followers on social media platform
Van de Poppe said the ETF is bullish on Bitcoin for the long term, but it will take time for tens of billions of dollars of capital to flow into BTC. For now, Bitcoin is likely to enter a period of consolidation as deep-pocketed investors cycle capital and traders wait for a new catalyst, the analyst said.
“However, in the short term, Bitcoin price is likely to consolidate and take a brief breather. Here are some reasons for this:
Switching from Grayscale Bitcoin Trust (GBTC) to an ETF requires selling BTC.
Institutions switch from spot Bitcoin to ETFs to comply with regulatory frameworks.
Speculators and self-selling firms built on the hype sell (or stop) their positions when they realize the hype is over.
Until there is a new event, the hype itself stops the sudden euphoria of buying real assets now.”
As Bitcoin cools, Van de Poppe believes altcoins will start to make their move. Bitcoin’s consolidation provides a time window for altcoins to outperform BTC and rise, according to analysts.
“Altcoins have struggled over the past few months since Bitcoin surged from $25,000 to $50,000. It is very likely that we will see a period of consolidation in Bitcoin, and there will probably be a relatively prolonged period of consolidation (3-6 months) before new highs occur. In the meantime, altcoin mania and general breakthroughs are the next steps.”
The trader also shares a chart that suggests BTC will consolidate between $39,000 and $50,000 for most of 2024, giving the altcoin plenty of time to trigger a breakout rally.
As of this writing, Bitcoin is worth $42,429.
Don’t miss a beat – subscribe to get email alerts delivered straight to your inbox
Check Price Action
follow us TwitterFacebook, Telegram
Daily Hodl Mix Surfing
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are entirely at your own risk and that you are responsible for any losses that may occur. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital asset, and The Daily Hodl is not investment advice. The Daily Hodl engages in affiliate marketing.
Featured image: Shutterstock/thinkhubstudio/Andy Chipus