As the price of Bitcoin (BTC) continues to decline, the rest of the market has followed, ushering in a cryptocurrency depression and sending altcoins toward their final capitulation phase of the current trading cycle, according to renowned crypto trading expert Michaël van de Poppe.
Specifically, van de Poppe said that he had witnessed this part of the cycle before, in 2020, and that altcoins, on which he went all-in one month ago, were now starting to “bleed massively” but that now was the time “that you’d want to risk more,” as per his article on June 17.
Altcoins performance. Source: Michaël van de Poppe
Echoes of the past
Indeed, the crypto analyst said he was not concerned about the current correction and being down on his investments because this was not his first rodeo. In fact, he had gone all-in into the likes of Verasity (VRA), Polygon (MATIC), and Fantom (FTM) in August 2020 during a very long bear market.
“The result? At first, the coins started to drop by more than 50% in a matter of a few months as the final correction took place. After that correction, some of them ran by more than 200x, through which a big group of people were left behind.”
On top of that, van de Poppe singled out the example of Solana (SOL), which “ran up by more than 600% in 2020” but “corrected by almost 90% during the second part of the year (…) before the big surge happened,” referring to the “return of more than 100x” in 2021, and adding that history will repeat itself.
Good news for altcoin holders?
Finally, as the crypto market specialist concluded:
“The first half of the year in 2022 and 2023 was terrible for the markets. The second part of the year has been super positive, through which those have yielded a positive return. The first year of 2024 has been terrible again, and the expectation is that we’re about to have a big upward return in the second half of the year.”
In fact, he observed that the timing of his current losses on investments coincided with the losses in the previous cycle and that altcoins “started to wake up extensively” once Bitcoin broke its all-time high (ATH), adding that “it seems the same period right now.”
As it happens, long-term Bitcoin investors aren’t losing hope either, taking the current price crash of the flagship decentralized finance (DeFi) asset as an opportunity to ‘buy the dip’ en masse, with the so-called “accumulation addresses” receiving tens of thousands BTC in recent days, as Finbold reports.
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