Altcoin
Bitcoin, Altcoin Corrections Are Normal, Trader Says: This Is His ‘Best Strategy’ To Handle Them
Pseudonymous analyst DeFi Midas you see Bitcoin BTC/USD and altcoins are poised for significant growth, countering bearish sentiments in the cryptocurrency market.
What happened: In a detailed thread, Midas laid out a bull case for both Bitcoin and altcoins, stating that the current market behavior is normal and consistent with previous bull cycles.
DeFi Midas points points out that Bitcoin’s post-halving consolidation is a typical phase, drawing parallels with the 2021 bull run. “Now we have 15 weeks of consolidation plus a 17% correction from ATH,” the analyst notes, adding that “ corrections and pauses are inevitable; that’s just how the market works.”
A similar bull run also occurred in 2017 and 2021. The current phase is that of accumulation which in 2016 lasted about four months and in 2020 it continued for five months.
The analyst also highlights several macroeconomic factors supporting a bullish outlook, including potential changes to the Federal Reserve’s balance sheet, stablecoin inflows, and upcoming events such as the US election in November 2024.
Read also: This Bitcoin whale pocketed $30 million with just 2 trades
Because matter: DeFi Midas Analysis Challenges Growing Bearish Sentiment in the Cryptocurrency Market. The analyst argues that although Bitcoin has reached new all-time highs, fundamental parameters are still far from the highs, suggesting room for further growth.
For altcoins, DeFi Midas points to Bitcoin dominance as a key indicator for the start of an “altseason.” The analyst notes: “Currently, this dominance has formed a range between 53 and 57%. A fall below this range will signal the approach or start of the altseason.”
What’s next: DeFi Midas predicts several catalysts that could trigger a market recovery, including the potential Ethereum and ETF Solana endorsements. The analyst concludes by advising investors to hold their positions, saying: “Holding is the best strategy right now. There are many warning signs that have not yet manifested themselves.”
This optimistic outlook provides a counterpoint to the prevailing market pessimism and suggests that the current cryptocurrency bull run may still be in its early stages.
The influence of Bitcoin as an institutional asset class it is expected to be explored in depth at Benzinga’s next event The future of digital assets event on November 19th.
Read also: This Trader Reportedly ‘Lost Everything, $12 Million Gone Forever’ After Going ‘All In’ on Ethereum
This content was produced in part with the aid of artificial intelligence tools and was reviewed and published by Benzinga editors.
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