The altcoin market has been experiencing a downtrend, with many altcoins seeing significant losses over the past few days. According to Felix Hartmann, founder of venture capital firm Hartmann Capital, this trend is likely to continue until the end of January 2025.
Hartmann’s Analysis
In a recent Xpost, Hartmann expressed his opinion that most alts may continue to run briefly but ultimately slow bleed or consolidate for 2-6 weeks. He emphasized that there isn’t much alpha in chasing alts at this point, as many have topped out after experiencing a 2-3x move in a week.
However, Hartmann also stated that it’s time to bring back a long bias. "While I expected slightly lower levels on some alts, perfect is the enemy of good; hence, it seems like an okay time to bring long bias back," he said.
Altcoin Market Update
The overall altcoin market has seen another 24-hour tumble, with around $481.6 million in long positions liquidated over the last day, according to CoinGlass. This is a significant loss for investors who had bet on the altcoins’ growth.
Pseudonymous trader Mister Crypto expressed his opinion that this was the final shakeout before the real exponential breakouts. "This was the final shakeout before the real exponential breakouts," he said in a Dec. 10 X post.
Top Losers
Among the top 100 cryptocurrencies, the biggest losers were:
- Ethena (ENA) – down 10.5%
- Pepe (PEPE) – dropped 10.6%
- Bonk (BONK) – fell 8.59%
These losses are significant and may indicate that investors are becoming more cautious.
Bitcoin Update
Bitcoin (BTC) has been trading at $96,663, down 1.5% over the last day at the time of publication. However, it’s worth noting that Bitcoin has traded below the psychologically crucial $100,000 level since Dec. 9 after reaching the six-figure milestone for the first time on Dec. 5.
Hartmann’s Take on Bitcoin
According to Hartmann, Bitcoin has a fair chance of retesting $99,000, primarily driven by short squeezes. He emphasized that traders should be cautious and not expect a sudden turnaround in the market.
What’s Next for Bitcoin?
If Bitcoin rises by 2.41% above the $99,000 level, around $1.53 billion in short positions will be at risk of liquidation. This is a significant development that could impact the overall market sentiment.
Traders are eyeing what’s next for Bitcoin, and many believe that it’s on the verge of a major move. CryptoSea co-founder Daan de Rover expressed his opinion that there’s a lot of liquidity building up on the topside for Bitcoin. "There’s a lot of liquidity building up on the topside for Bitcoin," he said in a Dec. 10 X post.
What to Expect Next
Each rally and dump seems to move us closer to return dispersion in the space, according to Hartmann. He emphasized that investors should be prepared for a potentially volatile market.
Pseudonymous crypto trader Daan Crypto Trades expressed his opinion that Bitcoin generally moves 30-50% after breaking a long consolidation within this cycle. "If last year was anything like we can expect this time, the next consolidation period should be shorter, followed by a new leg higher in Q1," he said.
Shift to Short-Term Trading
Syncracy Capital co-founder Daniel Cheung recently expressed his opinion that traders have shifted to a short-term trading mentality during this cycle. This shift may indicate that investors are becoming more risk-averse and focused on short-term gains.
Retail Traders and Market Sentiment
Crypto analysis firm Santiment emphasized that if retail traders react with fear and offload their crypto too quickly, it could trigger an aggressive recovery. This is a crucial point to consider, as market sentiment can have a significant impact on the overall market performance.
Conclusion
The altcoin market continues to slide, with many alts experiencing significant losses over the past few days. While some traders believe that this may be the final shakeout before exponential breakouts, others are cautious and expect a potentially volatile market.
As always, every investment and trading move involves risk, and readers should conduct their own research when making a decision. It’s essential to stay informed and adapt to changing market conditions to make the most of your investments.
