Prominent market analyst Michael Van de Poppe shared four market conditions that would confirm the growth of the altcoin market. Meanwhile, the cryptocurrency market continues to experience an extensive correction, affecting the price growth of several assets.
Ethereum Outpaces Bitcoin: A Positive Sign for Altcoins?
Ethereum has shown more resilience over the past month than Bitcoin, which is mostly interpreted as a bullish signal for altcoin enthusiasts. In the past week alone, the prominent altcoin reported a slight market gain of 0.86% compared to Bitcoin’s loss of 1.95%. When Ethereum outperforms Bitcoin, it spurs increased altcoin activity, as investor confidence spreads beyond the market leader into the broader crypto ecosystem.
However, the full takeover of the altcoin market only takes effect after the next technical development. First, de Poppe explains that Bitcoin, as the market leader, needs to achieve a break above the $92,000 resistance, potentially testing the $100,000 mark, to signal renewed market strength. Additionally, the analyst states that the ETH/BTC ratio needs to remain above its 20-day moving average (MA), indicating continued Ethereum dominance and further fueling altcoin accumulation. Together, these signals could set the technical basis for a significant rise in altcoins.
Macro factors could boost altcoin gains
In addition to crypto-specific indicators, de Poppe also touches on the broader financial market plays that could drive altcoins’ next move. The analyst suggests that a 5-10% correction in gold prices, coupled with a peak in silver, could encourage capital to flow into riskier assets like cryptocurrencies, including cryptocurrencies.
Meanwhile, the strong upward movement of the Nasdaq indicates an increased appetite for risk among investors, a development that often translates into increased activity in the crypto markets. Combined with positive momentum in Bitcoin and Ethereum, these macro signals could create an environment ripe for significant altcoin growth. According to de Poppe, the fulfillment of these conditions indicates that altcoins could achieve market gains of 200%-300% in the current market cycle.
Market overview
At the time of writing, the total cryptocurrency market is valued at $3.04 trillion, after a significant drop of 15.5% over the past month. Meanwhile, the altcoin market cap is $1.26 trillion, accounting for 41.44% of all circulating digital assets. In tandem, data from CoinMarketCap shows that the mid-season index is 20/100, as Bitcoin still has a dominant influence on the overall market performance, with a dominance of 58.6%.
In short, the conditions for a full altcoin breakout have yet to materialize, but the key indicators highlighted above suggest that scenario could be approaching if momentum shifts decisively towards risk assets.
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