Bitcoin and Altcoins Poised for a Bullish Breakout
Cryptocurrency strategist Michaël van de Poppe has recently shared insights with his followers, suggesting that the digital asset market could be nearing the end of a prolonged correction period. According to Van de Poppe, the crypto market is just weeks away from concluding its multi-month downturn and could soon experience a significant turnaround.
September's Bullish Prospects for Crypto
Van de Poppe highlights September as historically a bullish month for cryptocurrencies. He notes that while we might be in the "final weeks of pain," the market has already begun to show signs of recovery. He observes that Bitcoin (BTC) valuations are gradually trending upwards, suggesting a positive outlook for the rest of the year.
Altcoins and TOTAL3/BTC Chart Analysis
A key focus for Van de Poppe is the performance of altcoins, which are cryptocurrencies other than Bitcoin. He points to the TOTAL3/BTC chart, which tracks the market cap of cryptocurrencies excluding Bitcoin, Ethereum (ETH), and stablecoins, as a critical indicator. This chart shows what he describes as a "massive bullish divergence," a term used to indicate that momentum is increasing even while prices stagnate or decline. This divergence suggests that altcoins may be on the verge of a significant breakout.
Understanding Bullish Divergence
For those unfamiliar with the term, a bullish divergence occurs when the price of an asset is moving downward or sideways, but an indicator that measures momentum (like a moving average) is moving upward. This is often seen as a signal that the price may soon start to rise.
Decentralized Finance (DeFi) Sector's Potential
Van de Poppe is also closely monitoring the Decentralized Finance (DeFi) sector, which he believes will be one of the strongest performers through the end of 2024. The total value locked (TVL) in DeFi projects, particularly those on Ethereum, remains high. Van de Poppe highlights that AAVE, a leading DeFi protocol, has shown strength in recent weeks and could see further gains if its price breaks the $135 level.
Investor Caution
While the outlook seems promising, it's crucial for investors to perform their due diligence. The cryptocurrency market is highly volatile, and investing in Bitcoin, altcoins, or any digital assets comes with risks. Investors should be aware that all trades are their responsibility, and any potential losses incurred are their own.
Conclusion
As the crypto market navigates through its current phase, the coming weeks will be pivotal. With historical trends suggesting a bullish period ahead, both Bitcoin and altcoins could be on the brink of a significant breakout, particularly as September unfolds.
