Bitcoin undergoes a massive upswing and clinches above $29,000, breaking all the interim resistance. Meanwhile, the altcoins continue to trade with a minor upswing, indicating the flow of liquidity from the altcoins to Bitcoin. Now that the BTC price has received a magnificent bullish push as big players like Blackrock, Fidelity, Deutsche Bank, etc. have entered the crypto space, specifically Bitcoin, altcoins are expected to suffer more pain in the coming days.
Every price cycle undergoes multiple phases, which signifies diverse price actions and sentiments. The beginning and end of bull or bear markets are determined based on these phases. The investor’s sentiments also impact heavily on the value of the token as they undergo various phases like hope, belief, euphoria, denial, panic, etc., and many more. Currently, the altcoins in general have entered a depression phase and are expected to shift to disbelief soon.
Read More: Bitcoin Enters Beast Mode as it Heads Toward $30K! Will BTC Spot ETF Applications Fuel Further Rally?
In due course, the majority of altcoins may plunge harder, as predicted by a top analyst, Michael van de Poppe.
The analyst here compares the altcoin market cap with the traditional market cycle. Interestingly, the trend appears to have entered the depression phase presently. More selling pressure and panic selling may cause the sentiments to shift to disbelief. This is when the bottom of the rally may be reached, after which a giant recovery phase may begin.
Bitcoin and the majority of the altcoins have been following the chart closely, which has made it pretty easy to determine the next plan of action. Despite this, many analysts and veterans believe it is a good time to buy and hold altcoins. They are pretty confident that the liquidity flow from Bitcoin may soon enter the altcoins, which may trigger a healthy Altseaon very soon.
Source: https://coinpedia.org/altcoin/altcoins-may-bleed-red-in-the-coming-days-is-altseason-rammed-to-2024/