Altcoins Poised to Break Out of ‘Depression’ Phase and Enter Upward Trend, Says Analyst
Altcoins, or alternative cryptocurrencies, have been stuck in a prolonged period of stagnation with exceptionally low prices. However, according to crypto analyst Michaël van de Poppe, these digital assets may finally be ready for a significant upward trend. Van de Poppe’s insights are grounded in the psychological phases that investors typically go through during volatile market cycles, as depicted on the widely acknowledged Wall Street Cheat Sheet.
The current phase altcoins find themselves in is colloquially known as the “depression” phase, where prices have reached extreme lows. This phase is characterized by a sense of despondency, lack of enthusiasm, low trading volumes, and a general apathy towards digital assets. Many investors have become disheartened as their hopes for quick profits dwindle.
Van de Poppe, however, points out that this phase is often followed by a phase of “disbelief.” During the disbelief phase, there is a subtle uptick in prices that may go unnoticed by many market participants initially. The confidence in the market starts to regain, albeit cautiously. Currently, according to Van de Poppe, many altcoins are still in the depression phase but may be on the brink of transitioning into the disbelief phase. This shift can potentially signal the beginning of a more sustained upward trend for these digital assets.
In an interesting development, Van de Poppe also highlights the growing interest in crypto exchange-traded funds (ETFs). These investment vehicles track the performance of various cryptocurrencies, allowing investors to gain exposure to digital assets without directly owning them. The increasing number of applications for crypto ETFs suggests growing institutional interest in the market, which bodes well for the future of digital assets.
Despite the optimism surrounding altcoins, the entire crypto market faced a challenging start to the week. Bitcoin, the bellwether of the market, broke below the critical support level of $25,000 for the first time since mid-June. This decline was accompanied by historic lows in volatility, liquidity, trading volumes, and on-chain settlement volumes. Consequently, many traders fled from the altcoin market, leading to losses in nearly all tokens within the top 200.
As the market approaches the “disbelief” phase, investors will be watching closely for signs of a broader upward trend in digital assets. Additionally, the growing interest in crypto ETFs highlights the increasing acceptance of cryptocurrencies within the mainstream financial landscape, providing hope for the market’s future.
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