With the Bitcoin halving just 6 months away, the cryptocurrency market appears ripe for gains in so-called “altcoins” – digital assets besides Bitcoin, according to founder of MN Trading, Michaël van de Poppe.
In a recent Twitter thread, van de Poppe explained that altcoins are starting to break out from extended consolidation periods, signaling the start of a new bull market. However, negative market sentiment still dominates, with many traders doubting the sustainability of any rallies.
“The markets and sentiment tend to be correlated with each other. This means that the markets are currently in a state of mind where the expectation is that every rally is going to fail and we’ll correct back down,” van de Poppe wrote.
He cited Chainlink, a decentralized oracle network, as an example. After trading sideways for over 500 days, Chainlink finally broke out to new highs. Many traders suspect this is another “failed breakout,” but van de Poppe sees it as a significant technical development and urges investors to position themselves accordingly.
Van de Poppe reminded his followers to think in market cycles. In the previous bull market cycle, Ethereum rallied 60x from its bottom at $80 to a high of $4,800. He sees similarities between that period’s long consolidation and the current bearish sentiments.
When altcoins rally 50-100%, inexperienced traders often think it’s time to sell and book profits. However, van de Poppe advocates a more patient, layered selling strategy.
“If you see an altcoin substantially running upwards, time to slowly scale out. Every 20-50% dip is an opportunity to scale back in,” he explained. Rather than selling your full position at once, take partial profits on the way up and buy back on significant dips.
Read also:
- How Solana, Ethereum and These Cryptos Can Get You 90%+ Win Rate in the Current Market Condition
- In Two Weeks Bitcoin (BTC) Price Will Drop and This Will Happen to Altcoins
- SushiSwap Sees 50% Pump in 24 Hours, While This Crypto Quietly Raised $4.2m Ahead of ICO
For an asset like Chainlink making new highs, van de Poppe suggests selling 5-15% after a 10% price increase. This allows you to stay invested while locking in gains. If Chainlink corrects 10%, allocate 10% of your capital back into the asset to compound your holdings.
In conclusion, van de Poppe believes now presents an ideal opportunity to generate significant returns in altcoins leading into the next Bitcoin halving. By taking a measured approach of scaling out on rallies and buying dips, investors can maximize their gains in this emerging bull market.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
