Majority of altcoins may see a 'slow bleed' until late January 2025: VC

As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen more than my fair share of market cycles and trends. From the dot-com bubble to the cryptocurrency boom, I’ve learned one thing – markets are unpredictable but they always find a way to surprise us.

According to Felix Hartmann, founder of Hartmann Capital, it’s likely that most alternative cryptocurrencies could experience a decline in value and might continue to do so until as late as January 2025.

According to Hartmann’s recent post on Dec. 10th, some alternative assets might keep going for a short period, but the vast majority are expected to either gradually lose value or consolidate for approximately 2-6 weeks. In his view, there isn’t much profit potential (alpha) in pursuing these alternatives right now, as many have already peaked following rapid increases of around 2-3 times within a week.

Hartmann says its “time to bring long bias back”

Hartmann commented that although he anticipated slightly lower readings on certain alternatives, “striving for perfection can hinder progress”; as such, it appears reasonable for him to reinstate a longer-term bias at this point.

Over the past 24 hours, the total value of long positions in altcoins has been wiped out, amounting to approximately $481.62 million as per CoinGlass’s data.

In a recent post on December 10th, the pseudonymous trader known as “Mister Crypto” expressed the viewpoint that this current period is likely the last significant adjustment prior to substantial, rapid increases in value.

In the top 100 cryptocurrencies, Ethena (ENA) saw a decline of 10.46%, followed closely by Pepe (PEPE) with a drop of 10.62%, and Bonk (BONK) decreasing by 8.59%, as reported by CoinMarketCap.

As an analyst, I’m sharing that at the point of my writing, Bitcoin (BTC) is currently trading at approximately $96,663, representing a 1.5% decline over the preceding day. Notably, it has been trading below the psychologically significant $100,000 mark since December 9, having breached the six-figure barrier for the first time on December 5.

According to Hartmann’s analysis, there’s a good possibility that the price of Bitcoin could reach approximately $99,000, primarily due to the occurrence of “short squeezes.

Traders eye ‘what’s next’

Should Bitcoin increase by approximately 2.41%, surpassing the $99,000 mark, it could potentially trigger a liquidation of around $1.53 billion worth of short positions.

According to Daan de Rover, co-founder of CryptoSea, there is an increasing amount of Bitcoin being accumulated or held by investors (building up on the topside) as per his recent post on December 10th.

“We all know what’s next,” he added.

“Each rally and dump seems to move us closer to return dispersion in the space,” Hartmann said.

According to the anonymous cryptocurrency trader known as Daan, when Bitcoin breaks free from a prolonged period of little movement in its price cycle, it tends to increase by around 30-50%. This observation was made in a post on December 10.

Daan Crypto Trades suggests that if the pattern from last year repeats, then the upcoming consolidation phase might be shorter. This could potentially be followed by an upward trend in the first quarter of this year.

In more straightforward terms, Daniel Cheung, a co-founder at Syncracy Capital, has commented that traders are adopting a more short-term approach in their trading strategies as we progress through this economic period.

According to the cryptocurrency analysis company Santiment, if retail traders sell their cryptocurrencies due to fear, this sudden selling might initiate a swift rebound in the market.

2024-12-11 04:32

Majority of altcoins may see a ‘slow bleed’ until late January 2025: VC

Hartmann says its “time to bring long bias back”

Traders eye ‘what’s next’

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