Bitcoin and Altcoin Market Correction Expected to Last Until September, But the Bull Run Will Resume – Analyst

Bitcoin and Ethereum have recently experienced significant price drops, causing widespread concern among investors. Bitcoin’s fall below $55K triggered major trading signals, breaking the short-term uptrend since last August.

Bitcoin and Ethereum have seen a recent price drop, sparking concern among investors after a German state revealed it had moved 27,000 Bitcoins to be liquidated. However, a Crypto analyst has highlighted that the recent market dip is not solely about the German Bitcoin sale.

The broader context includes rate hikes, presidential election results, SEC decisions, ETF inflows, and external factors like Mt. Gox’s potential sale of 142,000 Bitcoins, putting pressure on the market. Despite the alarming drop, knee-jerk reactions are discouraged.

Institutions are taking advantage of the dip, with BlackRock and Fidelity reportedly buying the dip, indicating strong institutional confidence. The recent correction began on July 4th and is expected to continue until September, aligning with historical mid-cycle corrections that last 60-70 days.

Moreover, Bitcoin’s price action often correlates with the NASDAQ and S&P 500, suggesting that as long as these indices rise, Bitcoin will likely follow.

Expanding his horizons, the analyst is looking at altcoins for hidden gems. While several alts like Solana, Avalanche, and Polygon are expected to see a 10%-20% drawdown, strong assets like Ethereum and Solana are still worth accumulating. Both assets are expected to perform well, with Ethereum benefiting from upcoming ETF launches and Solana showing resilience during recent market turbulence.

Investors are advised to focus on proven performers and consider promising sectors like AI, gaming, and meme coins. Due to the liquidity issue among many new tokens, the above sectors may outperform as older ones lose value.

If considering meme coins or other altcoins, portfolio adjustments should be made gradually over 2-3 months. The bull run is expected to resume when Bitcoin breaks above the 21-weekly EMA and establishes a higher low. Patience and strategic accumulation of strong assets are recommended during this period.

According to the analyst, the key price targets include Bitcoin at $50K, Ethereum between $2,200-$2,600, and Solana at $100-$110.

While the transfer of funds to exchanges suggests Germany may intend to liquidate, it doesn’t confirm that the assets have been sold. Additionally, FTX’s bankruptcy estate is set to distribute about $16 billion in cash to crypto investors around September or October. This distribution is expected to act as a positive catalyst for the market in the coming months.

By advocating for strategic moves, identifying key levels, and exploring opportunities across different sectors, he empowers investors to weather the storm and confidently seize emerging trends.

The above is the detailed content of Bitcoin and Altcoin Market Correction Expected to Last Until September, But the Bull Run Will Resume – Analyst. For more information, please follow other related articles on the PHP Chinese website!