The cryptocurrency market witnessed a tremor on July 4th, 2024, as Bitcoin dipped below $59,000. This triggered a wave of concern within the investor community, with some analysts questioning the future of the bull run.
During an appearance on Crypto Banter’s The Ran Show, an analyst raised a red flag regarding Bitcoin’s repeated tests of its support level. This ninth attempt, he argued, could be a sign of weakness, potentially marking the end of the current bull market. He urged viewers to critically assess whether the market is truly bullish or simply experiencing a prolonged illusion.
The analyst further highlighted the market’s ruthless nature, weeding out less determined investors. Despite the frustrating 126-day stagnation, he expressed unwavering faith in Bitcoin’s long-term potential. However, he emphasized the importance of exercising caution with altcoins, particularly during these uncertain times.
Should You Steer Clear of Altcoins?
The analyst underscored the need for a deeper dive into why investors might want to hold off on accumulating altcoins. He pointed out the widespread belief that the altcoin rally has sputtered out due to Bitcoin’s sideways movement and the significant losses altcoins have endured.
However, he challenged this sentiment by acknowledging the historical pattern of recurring altcoin surges. He even pointed to instances where altcoins displayed relative strength during recent Bitcoin dips.
To illustrate his point, he cited the example of Pendle, a DeFi protocol. A recent, sharp decline in its Total Value Locked (TVL) was misinterpreted as a protocol issue, leading to a buying opportunity. However, the analyst clarified that the decline was simply due to maturing pools, not fundamental flaws within the protocol.
The analyst advised viewers to prioritize on-chain data analysis over fleeting Twitter trends. He presented a surprising development from FTX, the cryptocurrency exchange, as an example. FTX reportedly offered users more money than their initial deposits, suggesting a strong market turnaround could be imminent, potentially injecting significant capital back into the market.
While acknowledging the current pessimism, the analyst concluded by discussing Bitcoin’s long-term potential. He emphasized Bitcoin‘s market capitalization surpassing the combined value of the world’s largest banks, and compared it favorably to gold ETF inflows, hinting at a potential “hated rally” fueled by unexpected market positivity.