- Bitcoin has been trading sideways for two months, unable to surpass previous highs, suggesting a consolidation phase.
- Michaël van de Poppe sees this as the peak of Bitcoin’s market dominance, predicting a forthcoming shift in investor focus towards altcoins.
- The expected Ethereum ETF launch in May could catalyse this shift, revitalising the market and increasing interest in altcoins.
Bitcoin has been trading sideways with choppy motions for close to two months now but has been unable to break above its previous high. But while Bitcoin is consolidating, analyst Michaël van de Poppe believes altcoins are soon ready to rumble.
Van de Poppe believes the period of Bitcoin’s dominance in the crypto market has reached its highest point and may start to decline. Such a decline is usually an opportunity for altcoins to gain prominence. So, he anticipates a shift in investor focus from Bitcoin to these altcoins in the near future.
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He mentions a “quiet vacuum” which implies that the market is currently in a state of inactivity or stagnation, lacking significant movement or excitement. This stagnant phase is something that needs to be overcome to usher in more dynamic market conditions.
The potential catalyst for breaking out of this lull could be the excitement and momentum around the expected launch of an Ethereum Exchange-Traded Fund (ETF) in May.
This event could stimulate increased trading activity and interest in Ethereum and possibly other altcoins, thereby diversifying the focus away from just Bitcoin and revitalising the broader market with new energy and investments.
However, it should be noted that several seasoned analysts don’t give an approval by May much of a chance – yet the possibility exists.
Tips For Calling Tops in Bull Run
Fellow analyst Dennis Liu (aka @VirtualBacon) has a tip up his sleeve in regards to calling tops in a bull market.
Liu says predicting the exact time when altcoins will reach their highest value relative to Bitcoin is difficult, and no method can guarantee accurate predictions.
However, he points out a specific trend that traders might find useful:
If an altcoin consistently outperforms Bitcoin over a three-month period, it is unusual for this trend to extend into a fourth month. This pattern suggests that after three months of outperforming Bitcoin, an altcoin’s relative performance might plateau or decline.
Liu said, “keep this in mind for your trading strategy,” meaning traders should consider this trend when planning their investment moves.
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This could involve taking profits or reassessing positions in altcoins that have been outperforming Bitcoin for three consecutive months, as the likelihood of continued outperformance in the next period could be lower.
However, as always, it’s best to do your own investigations and one way to start is by checking out our guide on analysing crypto before buying.
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