- Blockchain analyst Michaël van de Poppe suggests that the downward trend of Bitcoin dominance could indicate a coming surge for altcoins.
- Van de Poppe is particularly bullish on Ethereum, hinting at an upcoming approval of an Ethereum futures exchange-traded fund.
Bitcoin Dominance as a Predictive Indicator
Cryptocurrency analyst Michaël van de Poppe has been closely monitoring the Bitcoin dominance (BTC.D) chart, an analytical tool that represents Bitcoin’s share in the total cryptocurrency market cap. In his view, this chart is not merely an idle metric but may serve as a prescient indicator for market movements. According to Van de Poppe, the current patterns on the BTC.D chart bear resemblance to its late 2019 to mid-2020 trends, when Bitcoin’s market share faced resistance at the 200-week Exponential Moving Average (EMA).
For those less versed in trading lingo, the 200-week EMA acts as a pivotal barrier that asset prices struggle to cross. Typically, a bearish BTC.D chart—meaning Bitcoin is losing its market share—is viewed as a harbinger of bullish movements for alternative cryptocurrencies, or altcoins.
Michaël van de Poppe posits that this historical performance could repeat itself, particularly as the Bitcoin halving event looms 8-10 months ahead.
“Bitcoin dominance is down since the test of the 200-week EMA, aligning with previous cycles,”
he says. This implies that altcoins could experience a significant upswing in value compared to Bitcoin.
Ethereum: A Case for Optimism
Michaël van de Poppe has explicitly voiced bullish sentiments for Ethereum, particularly when evaluated against Bitcoin (ETH/BTC). His optimism isn’t without foundation; he alludes to Ethereum’s low point occurring 252 days prior to Bitcoin’s halving. Such temporal markers have previously heralded notable market shifts.
Further fueling this bullish outlook is the likelihood of the U.S. Securities and Exchange Commission approving an Ethereum futures exchange-traded fund (ETF) within a month. An ETF approval could exponentially elevate Ethereum’s profile, attracting both retail and institutional investors.
As a final note, Van de Poppe’s projections show ETH/BTC potentially reaching a value of 0.06992 BTC, which would equate to $1,799. This is notably higher than the current trading rate of 0.06303 BTC or $1,621.
The expert’s comments underscore a broader, often overlooked, perspective—that the crypto bull market can commence when it’s least expected. As for now, all signs, according to Van de Poppe, point to an imminent breakout for altcoins across the board.