Altcoins have endured a prolonged period of stagnation characterized by exceptionally low prices. However, according to crypto analyst Michaël van de Poppe, these digital assets may be gearing up for a significant upward trend.
Van de Poppe’s insights are grounded in the widely acknowledged Wall Street Cheat Sheet, a chart that maps the psychological phases that investors typically navigate during volatile market cycles.
In this context, the current phase corresponds to what is colloquially known as the “depression” phase, where prices reach extreme lows.
Altcoins ‘Depression’ Phase And Its Telltale Signs
The depression phase in the crypto market is marked by a sense of despondency, as prices slump to their lowest levels, leaving many investors disheartened. During this phase, the market often experiences a lack of enthusiasm, low trading volumes, and a general sense of apathy towards digital assets.
#Altcoins are in their depression phase and are ready to start trending upwards.
It might sound repetitive, but for most of the altcoins, the lows might be in or close to in.
The interest in crypto is on the same levels as 2020, while BTC pairs are slowly breaking out.
— Michaël van de Poppe (@CryptoMichNL) September 9, 2023
This can be particularly discouraging for those who had hoped for quick profits. However, as history has shown, the depression phase is frequently succeeded by a phase of “disbelief.”
The disbelief phase is characterized by a subtle uptick in prices, which may go unnoticed by many market participants initially. People start to regain confidence in the market, albeit cautiously.
Van de Poppe pointed out that, currently, many altcoins are in the depression phase and may be on the cusp of transitioning to the disbelief phase. This shift can signal the beginning of a more sustained upward trend for these digital assets.
Crypto ETFs As Harbingers Of Strength
Van de Poppe also highlighted an interesting development in the cryptocurrency space: the growing interest in crypto exchange-traded funds (ETFs). Crypto ETFs are investment vehicles that track the performance of various cryptocurrencies, allowing investors to gain exposure to digital assets without owning them directly.
The increasing number of applications for crypto ETFs suggests growing institutional interest in the market, which can be seen as a positive indicator for the future of digital assets.
The Current Crypto Landscape
Despite the optimism surrounding altcoins, the crypto market experienced a challenging start to the week. Bitcoin, the bellwether of the crypto market, broke below the critical support level of $25,000 for the first time since mid-June.
This decline was accompanied by historic lows in volatility, liquidity, trading volumes, and on-chain settlement volumes. Consequently, many traders fled from the altcoin market, leading to losses in nearly all tokens within the top 200.
As the market inches towards the “disbelief” phase, investors will be keenly watching for signs of a broader upward trend in digital assets. Additionally, the growing interest in crypto ETFs underscores the increasing acceptance of cryptocurrencies within the mainstream financial landscape, offering a glimmer of hope for the market’s future.
Featured image from Shutterstock