- According to Michaël van de Poppe, altcoin rallies happen during Bitcoin consolidation.
- Ethereum’s 2016 rally started when Bitcoin ended its initial rally ahead of the following Bitcoin halving event.
- Van de Poppe noted that Ethereum has a potential value of 60% to gain before meeting significant resistance.
According to the famous cryptocurrency analyst Michaël van de Poppe, altcoin rallies happen during Bitcoin consolidation before breaking into new highs. Van de Poppe made the statement in a recently uploaded video, where he analyzed the potential impact of a Bitcoin ETF on the altcoin market.
The renowned crypto analyst compared the altcoin market’s current behavior to historical trends. He focused on Ethereum’s price trend ahead of the 2016 bull run. Using historical data, Van de Poppe showed that Ethereum’s 2016 rally started when Bitcoin ended its initial rally ahead of the following Bitcoin halving event.
The analyst also showed that after the initial rally, Ethereum consolidated in a sideways movement for a few months before embarking on the main rally of the bull run of the 2016 Bitcoin halving. According to him, the current crypto market cycle has the potential to play out a similar scenario to the 2016/2017 bull run.
To summarize his initial explanation, Van de Poppe noted that the alternating behavior between the Bitcoin and altcoin markets results from the capital flow across both ecosystems. He explained that Ethereum and other altcoins tend to rally when Bitcoin’s upward movement starts to cool down, resulting in money from Bitcoin flowing into Ethereum and other ecosystems.
Meanwhile, the analyst noted the likelihood of Ethereum ETF approval alongside the Bitcoin ETF. He thought that would imply a simultaneous capital inflow into both ecosystems. Therefore, he believes the altcoin market will gain momentum following the anticipated inflow into the Ethereum ecosystem.
Ultimately, Van de Poppe thinks factors such as seasonality, ETF, and valuation suggest that a potential altcoin rally could be in the making. He noted that Ethereum has a potential value of 60% to gain before reaching resistances comparable to those spotted for Bitcoin, around $48,000.
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