Ethereum And Altcoins Crash: Why Is This Analyst Super Bullish?
April 02 2024 - 1:30PM
NEWSBTC
Altcoins like Ethereum, Cardano, Solana, and the rest might be
lower at spot rates. However, according to one analyst who sees a
parallel in the current formation to the 2020 market cycle, they
are gearing up for a potential surge. In a post on X, the
analyst says that often, after a period of accumulation and a
retest of previous highs, altcoins tend to be volatile. The crypto
analyst also notes that Bitcoin has pulled back from its all-time
highs and is preparing for a possible retest of this level
registered in March. Though altcoins have been decimated,
looking at price action in the past 24 hours, altcoins are on a
bullish path, similar to the last cycle registered in 2020. The
analyst says Bitcoin will catalyze the altcoin swing to fresh
levels and valuations. Will Altcoins Repeat The 2020 Cycle? For
now, it is hard to predict the exact valuation of top altcoins.
However, the analyst notes a similar formation in the current price
action. Related Reading: Bitcoin Final Dance: Analyst Eyes
Final Peak Ahead Of Halving When altcoins consolidated after
surging, prices tended to recover strongly. This spike was evident,
especially once Bitcoin broke through critical liquidation levels
and entered “price discovery” or fresh all-time highs.
Currently, Bitcoin is in this position. The coin is trading lower
and cooling off from all-time highs. Even after higher highs last
week, bulls didn’t break the $71,700 level in the daily chart. With
BTC collapsing, altcoins also fell, with Ethereum, Solana, and top
coins slipping below support levels. Will Ethereum And Other
Altcoins Bounce Back Strongly? The altcoin season might come
earlier this time, especially once Bitcoin recovers. Possible
triggers include the upcoming Bitcoin halving event. Analysts claim
that halving will likely create a supply crisis, causing scarcity.
If institutions funnel the same demand level, BTC will likely rip
higher, breaking $71,700 and even $73,800 all-time highs. Beyond
this, upcoming network upgrades in Ethereum, like the recently
mentioned “Purge” and Firedancer integration in Solana, might
trigger demand. Developers are working towards Voltaire in Cardano.
All these changes plan to make the top smart contracts platform
more reliable and enhance performance. Related Reading:
Tether Buys 8,888 Bitcoin For $618 Million, But Why Is Price Down?
Besides network upgrades, analysts are considering the possible
approval of spot Ethereum exchange-traded funds (ETFs). If the
United States Securities and Exchange Commission (SEC) approves
this product, ETH might benefit by lifting others. It might also
accelerate the drafting of fitting laws, especially now that
BlackRock thinks tokenization and real-world assets (RWAs) are the
future of finance. Feature image from Shutterstock, chart
from TradingView
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