- Cody Buffington believes an altcoin season is coming soon.
- Bitcoin is experiencing a temporary setback.
- Whale traders on derivatives are in risk-off mode.
Despite Bitcoin’s recent price dip, crypto analyst Cody Buffington predicts an impending altcoin season, citing on-chain data and market trends as key indicators.
Buffington noted Bitcoin’s decline towards $60,000 in the last week of June as the flagship cryptocurrency heads for a potential retest of its early May support level. According to Buffington, the current dip in Bitcoin’s price is testing investor sentiment, as BTC’s price behavior around the support level could influence market direction.
Meanwhile, Buffington emphasized Bitcoin’s recent bearish trend, noting that it has pushed the pioneer cryptocurrency below multiple moving averages. Consequently, demand for BTC is experiencing a temporary setback, with Bitcoin whales slowing their transaction activity just before the price slipped below $63,000. Buffington cited a related comment by CryptoQuant CEO Ki Young Ju, who said:
“Whale traders on derivatives are in risk-off mode.”
Continuing his presentation, Buffington highlighted Santiment’s insights into the developments surrounding BTC. The crypto analysis platform noted that the crowd became fearful or disinterested in Bitcoin when the price ranged between $66,000 and $65,000. Santiment acknowledged that such extended FUD levels are rare, but noted that BTC trader fatigue, combined with whale accumulation, can lead to notable bounces.
Focusing on altcoins, Buffington highlighted continued weakness in the market. However, he noted that analysts believe this might be the last correction before capital flows back into the altcoin market. He cited Michael van de Poppe’s prediction that the final few downward weeks for altcoins are occurring, forecasting an imminent reversal soon.
As expected, Buffington highlighted Poppe’s post, showing that the last time the market reversed after a drop, some altcoins rallied between 300% and 650%.
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