Crypto Analyst Unveils Ultimate Altcoin Buying Guide
February 26 2024 - 1:00PM
NEWSBTC
Michaël van de Poppe, a renowned crypto analyst and the CEO of MN
Trading Consultancy, recently took to X (formerly Twitter) to share
his insights on a perennial challenge in the cryptocurrency market:
how to strategically enter the altcoin market without falling prey
to the pitfalls of FOMO and market hype. His guide, dubbed “The
Ultimate Strategy to Step into Altcoins,” aims to arm investors
with the knowledge to make informed decisions. Crypto Guide: When
To Buy Altcoins Van de Poppe opens his discussion by framing the
issue as a “Million Dollar question,” emphasizing the difficulty
many face when trying to navigate the highly volatile altcoin
market. “How do you position yourself into an Altcoin running
upwards? How do you avoid chasing FOMO and hype?” he queries,
setting the stage for a deep dive into the complexities of market
timing and investment strategies. Related Reading: Crypto Platform
Which Predicted Bitcoin To Reach $50,000 Has Released A New Target
He starkly highlights a common misstep among investors, pointing
out, “Between 80-90% of buyers who purchase an asset do that in the
last 10% of the price movements.” This statistic underlines the
herd mentality prevalent in the investment world, where many are
drawn to an asset only after witnessing significant gains, often
too late to realize similar returns. A crucial piece of advice from
van de Poppe centers around the deceptive nature of market hype,
especially as it manifests on social media platforms. “Once you
start to see the hype increase on social media, it means that
you’re probably still relatively late to the party,” he states,
cautioning investors against making decisions based on the
heightened visibility of an asset, which often signals it is
nearing its peak. Van de Poppe argues for a contrarian approach to
investing, suggesting that the greatest opportunities lie in
moments of widespread doubt or negativity. He offers a compelling
comparison, “After the collapse of FTX, Bitcoin’s price was
swimming around a value of $15,500 per Bitcoin. Related Reading:
Bitcoin Bulls On The Charge: Crypto Platform Forecasts $63K Surge
By March During this period, almost no one was interested in
getting into a position.” He contrasts this with the period leading
up to the ETF approval when Bitcoin was trading at significantly
higher prices, to illustrate the heightened risks associated with
entering the market during periods of optimism. One of the most
emphatic pieces of advice from van de Poppe is to avoid the
temptation of chasing rallies. “The risks are just not worth it to
chase a rally. It’s always better to wait for a correction,” he
advises. He elaborates on this point by recommending that investors
wait for an altcoin to correct by 25-60% from its recent peak
before considering an entry. “This means buyers are likely to take
over and the risk/reward is more positive,” van de Poppe explains,
highlighting the strategic benefit of patience and timing in
maximizing investment returns. Another option is to examine the
total market capitalization of the altcoins, either with Ethereum
(“TOTAL2”) or without ETH (“TOTAL3”) on TradingView.com. The two
metrics can give an indication of what stage the market is
currently in – a Bitcoin dominance phase or an emerging altcoin
season. At press time, TOTAL3 stood at $546 billion after
surpassing the crucial resistance at the 0.236 Fibonacci
retracement level. Featured image from iStock, chart from
TradingView.com
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