An analyst who nailed the top of Bitcoin’s (BTC) 2021 bull market believes altcoins have found their bottom.
Pseudonymous trader Pentoshi shares with his 801,500 followers on the social media platform X a chart showing the total crypto market cap excluding the top ten digital assets and stablecoins, often used to gauge altcoin strength.
The analyst predicts that altcoins in general will witness recovery rallies with brief pullbacks in between.
“For alts, I think we see something like this. But I believe this will be the general path for the market and that at the minimum, there will be a few weeks of alts catching a bid.
And as usual, no charts/tickers, etc. for them. I only tweet BTC, ETH and SOL charts. Red line isn’t exact, but just a general idea of where and how I think we likely go. I think it’s very unlikely we see a lower low from here as things stand.”
While the analyst predicts relief rallies for the altcoin market after being bearish for months, he says that alts may be stuck in a range for a considerable amount of time.
“Crazy, but alts got so demolished in the last few months that the market on average was only 15%-20% above the bear market range highs, but many made new all-time lows in general. Think it’s quite possible we are stuck somewhere from the lows to that last lower high range for quite some time. But feel they are going to get some relief .”
Pentoshi also says that despite Bitcoin’s (BTC) recent correction on the weekly chart to the low $50,000 range, he remains bullish on the top digital asset by market cap, and says that current fundamentals can push BTC higher than most expect.
“Got pretty close to $51,000 at $53,000. I think no matter what anytime we see that area, even if we return it’s just such great long-term value when thinking about the future of BTC. Not even talking about from a trading perspective. Look at the direction of the world and irresponsible governments and central banks. Higher than we ever thought. Eventually.”
Bitcoin is trading for $64,534 at time of writing, up more than 2% in the last 24 hours.
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Generated Image: Midjourney