Originally published on: December 11, 2024
Venture capitalist Felix Hartmann predicts that the majority of altcoins will continue to experience a downward trend until the end of January 2025. While some altcoins may have brief upticks, Hartmann foresees most of them either slow bleeding or consolidating for the next 2-6 weeks. He advises against chasing alts for quick gains as many have already peaked after significant price surges.
The recent downturn in the altcoin market has resulted in approximately $481.6 million in long positions being liquidated in the past 24 hours, as reported by CoinGlass. Pseudonymous trader Mister Crypto believes that this could be the final shakeout before exponential breakouts occur.
Key cryptocurrencies like Ethena (ENA), PepePEPE, and BonkBONK have experienced significant losses, with Bitcoin (BTC) trading at $96,663, down 1.5% over the last day. Bitcoin has struggled to maintain its position above $100,000 since December 5.
Despite the current challenges, Hartmann remains optimistic about Bitcoin retesting the $99,000 level, driven by short squeezes. A breakthrough above this level could trigger the liquidation of around $1.53 billion in short positions, indicating a strong potential for a bullish rally.
Echoing this sentiment, CryptoSea co-founder Daan de Rover suggests that Bitcoin’s liquidity is building up, hinting at a possible upward momentum in the near future. Crypto traders expect a return dispersion in the space, with potential for significant price movements following a consolidation period.
As traders shift towards a short-term trading mentality in this cycle, analysis firm Santiment warns against hasty selling that could thwart a potential recovery. While uncertainties loom over the altcoin market, strategic planning and research remain essential for making informed investment decisions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research before making any financial decisions. Stay informed with critical insights by subscribing to the Markets Outlook newsletter for the latest updates on investment opportunities and trading strategies.
