Crypto Analyst: Altcoins Like Chainlink (LINK) Are the Cheapest in 3 Years; Shares Factors That Could Trigger a Rally
Cryptocurrency analyst Michaël van de Poppe provides thoughts on the present condition of altcoins. He suggested they are at their lowest point in three years and could be on the verge of a massive bull market.
In his latest tweet, van de Poppe shares several key factors that could cause a surge in altcoin prices.
What you'll learn 👉
Factors Shaping the Crypto Market
Van de Poppe stated that the last Federal Reserve meeting was the most hawkish in the past year. Despite Jerome Powell’s bearish remarks on crypto, the analyst notes a major decrease in Treasury bond yields.
This divergence suggests that the market is pricing in potential rate cuts sooner than the Fed’s projections. Van de Poppe is also predicting multiple rate cuts rather than the single cut forecast by the Fed.
The analyst draws a parallel to October 2023, when treasury yields peaked and altcoins experienced substantial runs. During this period, many altcoins saw 5-10x gains against Bitcoin before BTC reasserted its dominance.
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Show more +Cyclical Nature of Crypto Markets
Van de Poppe highlights a remarkable seasonality in crypto markets over the past three years. He uses Chainlink (LINK) as a prime example:
- 2022: Correction in the first half, followed by a 120% surge in the second half
- 2023: Similar pattern with a nearly 150% increase in the latter half of the year
- 2024: Currently experiencing downward momentum, with Chainlink correcting by over 60%
The analyst suggests that this pattern indicates a potential reversal in the second half of 2024, with bottoms typically forming in May/June.
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Examining the OTHERS/BTC chart, which represents the performance of altcoins against Bitcoin, van de Poppe identifies a double bottoming procedure.
This technical formation, coupled with altcoins being at their lowest valuations compared to Bitcoin in three years, supports his thesis of an impending altcoin season.
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