A popular cryptocurrency analyst has suggested that altcoins may outperform Bitcoin (BTC) in the lead up to the BTC halving. Michaël van de Poppe, a crypto trader with a large following on X social media platform, has been studying the Bitcoin dominance (BTC.D) chart.Van de Poppe addresses altcoin future
This chart shows the percentage of the total crypto market cap that is held by BTC.
Van de Poppe believes that the BTC.D chart could repeat its market structure from late 2019 to mid-2020, during which it respected the 200-week exponential moving average (EMA) as resistance.
Traders typically view a bearish BTC.D chart as a positive signal for altcoins, as it suggests that altcoins may increase in value faster than BTC.
Van de Poppe stated the following:
“Well, the overall sentiment is still that the markets are continuing to fall, which might be possible. On the other hand, Bitcoin dominance is down since the test of the 200-week EMA, which is in line with the previous cycles, too.”
He continued and said this:
“That means that, as we’re again 8-10 months before the halving of Bitcoin, we can expect to see a surge in altcoins, rather than a downwards moving market.
And yes, of course, if Bitcoin falls another 10% in September, the US dollar values of altcoins will start to fall too. But did we see that happen in the previous corrections?
Not entirely. We’ve seen a case where the BTC pairs of altcoins are bouncing up. That’s a slight sign of strength. If that continues to happen, we’re on the edge of having breakouts on altcoins across the board.”
Van de Poppe is optimistic about Ethereum (ETH) compared to Bitcoin (ETH/BTC). He believes that we have already hit the bottom for Ethereum against Bitcoin, especially since the low occurred 252 days before the Bitcoin halving.
Additionally, there is a high probability of the U.S. Securities and Exchange Commission approving the Ethereum futures exchange-traded fund within the next month. Van de Poppe thinks that this could be the beginning of a bull market as they tend to start unexpectedly.