Coin Edition -
- Michael van de Poppe advised followers against buying overvalued altcoins.
- The analyst thinks Ethereum has been undervalued since the Merge implementation.
- Van de Poppe recommended waiting for a 25% pullback before buying a rallying altcoin.
Michael van de Poppe, CEO of MN Trading, has provided a strategy for stepping into the upcoming altcoins bull cycle. In a recently uploaded video, the renowned crypto analyst told his followers to avoid buying overvalued assets, providing details on figuring out ideal entry points when trading cryptocurrencies.
Van de Poppe used Ethereum’s price development as a classic example for identifying an undervalued cryptocurrency. He noted that the actual value of the Merge is yet to reflect on Ethereum’s price. According to him, the Merge’s impact on Ethereum is supposed to be long-term. However, the flagship altcoin has consolidated after implementing the Merge.
Overall, Van de Poppe analyzed the classic movement of cryptocurrencies, noting how they ride on hype and sentiments during initial rallies. According to him, influencers who may have invested in such cryptos generate the hype. He advised against entering the market after the rallies have taken off and the hype is high.
According to Van de Poppe, buying digital assets under such conditions entails more risk because it would expose the buyer to higher risks. Instead, he advised his followers to wait for pullbacks of around 25%. The analyst explained that waiting for pullbacks provides better entry opportunities with potentially significant profit margins and minimizes the risk exposure for the investment.
The expert used multiple examples to show how rallies and percentage pullbacks represent classic crypto market behaviors. According to Van de Poppe, they provide consistent patterns for predicting the upcoming altcoin market for maximum profit.
Analyzing the altcoin market, Van de Poppe used the ETH/BTC weekly chart on TradingView to show that an altcoin season is about to kick in. He revealed that funds are beginning to rotate from Bitcoin into Ethereum, owing to a developing reversal in the protracted downtrend of the pair. Hence, he foresees an impending rally for altcoins in the Ethereum ecosystem due to Ethereum’s undervalued status.
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