The crypto market is not where it should be right now, at least not in terms of prices – specifically altcoins – which some investors believe should, as always, be going up.

Altcoins, also known as all digital assets excluding Bitcoin, fell to new lows against Bitcoin last week. The drop is steep and has caught the attention of analysts. Two notable figures, Michael van de Poppe and Moustache, shared their views on the situation.

Deciphering the Current State of Altcoins

One of the most respected crypto analysts, Michael van de Poppe, has expressed his concerns about the current state of altcoins. He wrote in a recent post on X that most altcoins had seen severe declines — a 60% to 70% drop from their peak prices in March 2024 — which he said had led to widespread unrest among investors.

#Altcoins have hit new lows against Bitcoin over the past week.

However, the bottom process is still ongoing.

If altcoins are in demand again after the bounce next week, things look good. photo.twitter.com/iojvHATtfi

— Michaël van de Poppe (@CryptoMichNL) August 11, 2024

Van de Poppe thinks the market is nearing the bottom. It may look bleak, but he believes the coming weeks are crucial. The question is whether altcoins can find a bottom and then create a basis for recovery.

If the downward trend continues, things will get worse before they get better. This cautious attitude from Van de Poppe reflects his reputation for delivering no-nonsense analysis, unafraid to face the stark and bold realities that market trends bring.

Total crypto market cap at $2 trillion on the 24-hour chart: TradingView.com

Analyst shares a different perspective

On the other hand, analyst Moustache has a different take. In a recent X-post, Moustache shared his analysis of the current altcoin market cycle. He compared it to previous cycles and noted that history may not repeat itself exactly, but it does tend to rhyme.

#Altcoins

History doesn’t repeat itself, but it often rhymes.

The cycle for the Totalmarketcap still looks very similar to the previous one.

Did you know that there is currently a descending, widening wedge forming below the 2021 resistance/ATH?

They didn’t shake me apart.

Positive. photo.twitter.com/1VK4vMrYV1

— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) August 10, 2024

Based on Moustache’s forecast, the total altcoin market cap is showing a potential descending, widening wedge pattern: a formation that remains within the 2021 support-resistance range, which was the peak period for many altcoins.

Source: TradingView

For Moustache, the markets seem volatile at the moment, but there could be a bullish signal at play. In the past, he notes, these types of altcoin structures have typically led to big rallies. He then argues that the market is now reaching an almost inevitable tipping point, which he believes will spark a massive rally.

The way forward

The broader economic climate is exacerbating this highly volatile market. Recession fears and further regulatory uncertainties over what the future holds for such disruptive technologies as cryptocurrencies only add to the complexity. In that sense, it’s not one or the other; it’s just that the composition is making the turbulence felt by altcoins a “perfect storm” that is compounding the challenges for investors.

At such times, investors need to be informed and strategic. Panic selling is often counterproductive. The process requires patience, in-depth research and a willingness to take risks. It is also advisable to diversify your investments rather than putting all the proverbial eggs in one basket.

Main image from Kriptokoin.com, chart from TradingView