Most alternative cryptocurrencies may continue to trend down, potentially lasting until the end of January 2025, said Felix Hartmann, founder of venture capital firm Hartmann Capital.
“Some altcoins may continue to rise slightly, but most are likely to bleed slowly or consolidate over the next 2-6 weeks,” Hartmann shared in a post on X on December 10. “There isn’t much to look forward to in pursuing altcoins right now, in my opinion, as many have peaked after doubling or tripling in a week.”
Hartmann stated that this is “the time to bring back the long-term buying trend.”
“While I expect some altcoins to decline less, nothing is perfect; so it seems this is a reasonable time to bring back the long-term buying trend,” Hartmann said.
The overall altcoin market has seen another day of price declines in the past 24 hours, with about $481.62 million in long positions liquidated in the past day, according to CoinGlass.
See more: Selling Bitcoin: A major strategic mistake by the U.S. government?
The trader known as “Mister Crypto” said on X on December 10 that “this is the last shake before the real growth explosions happen.”
Among the top 100 cryptocurrencies, the hardest hit are Ethena (ENA), down 10.46%, Pepe (PEPE), down 10.62%, and Bonk (BONK), down 8.59%, according to CoinMarketCap.
Bitcoin (BTC) is trading at $96,663, down 1.5% in the past day at the time of publication, and has traded below the important psychological level of $100,000 since December 9 after first reaching six figures on December 5.
Bitcoin is trading at $96,270 at the time of publication. Source: CoinMarketCap
Hartmann claims that Bitcoin has a “fair chance” to retest the $99,000 level, mainly driven by “short squeezes.”
Traders are waiting to see ‘what's next’
If Bitcoin rises 2.41%, surpassing the $99,000 mark, about $1.53 billion in short positions will be at risk of liquidation.
“There is a large amount of liquidity building above for Bitcoin,” Daan de Rover, co-founder of CryptoSea, stated in a post on X on December 10.
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“We all know what’s going to happen next,” he added.
If Bitcoin surpasses $99,000, about $1.53 billion in short positions will be at risk of liquidation. Source: CoinGlass
“Each rise and fall seems to bring us closer to distribution again in the space,” Hartmann said.
The cryptocurrency trader known as Daan Crypto Trades stated in a post on X on December 10 that Bitcoin “often moves 30-50% after breaking out of a long consolidation in this cycle.”
“If last year is anything we can expect this time, then the next consolidation phase should be shorter, followed by a new rally in Q1,” Daan Crypto Trades said.
Meanwhile, recently co-founder of Syncracy Capital, Daniel Cheung, stated that traders have shifted to a “short-term” trading mindset in this cycle.
Cryptocurrency analysis firm Santiment stated that if retail traders “react with fear” and quickly sell off their cryptocurrencies, that could trigger a strong recovery.
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