A popular crypto analyst has adopted a more optimistic outlook towards altcoins as the total value of the cryptocurrency market surpasses $3 trillion.
The analyst, known by the nickname Pentoshi, predicts that a major movement may begin in the market when the total crypto market value (TOTAL3) excluding Bitcoin and Ethereum exceeds $790 billion.
Pentoshi states that corrections are inevitable as TOTAL3 moves upward. "Prices do not move in a straight line. In this process, we will encounter situations such as fluctuations, bull traps and bear traps. However, such movements create opportunities for investors," said the analyst, adding that he will evaluate pullbacks and add positions.
Bitcoin and Altcoin Differences
Pentoshi says that Bitcoin will not see the major corrections it experienced in previous bull markets this cycle, but altcoins could still experience significant corrections. Recalling that in past bull cycles, Bitcoin lost more than 20% in value eight times in a year, the analyst points out that such major corrections will now be rarer. However, a similar situation does not apply to the altcoin market.
“Major corrections in altcoins are inevitable. Such declines usually lead to liquidation of highly leveraged positions and rebalancing of the market,” Pentoshi said, noting that such pullbacks usually present the best buying opportunities.
According to Pentoshi, altcoins are likely to experience major corrections of 15-20% every month or more frequently during a bull market. “Such large single-day declines often create opportunities for quick profits,” the analyst said, emphasizing that investors should be prepared for these movements.
As a result, according to Pentoshi’s analysis, the crypto market will present an environment open to huge gains and volatility in the coming period. It stands out that altcoin investors in particular should be careful and ready to benefit from this volatility.