Altcoins
Experts Predict Altcoin Market Collapse and Suggest Optimal Buy-In Points for Top 10 Cryptocurrencies
Renowned crypto analyst Doctor Profit recently released “The big altcoin report” for the third quarter of the year, suggesting further downward movement for the market.
Based on historic performance and the current state of the market, Doctor Profit warns of an imminent collapse of the altcoin market triggered by an episode of uncertainty and a recent price correction in the top 100 cryptocurrencies, led by Bitcoin (BTC).
However, the analyst remains optimistic highlighting Potential buying opportunities and optimal entry points for several flagship altcoins.
Altcoin market correction
Doctor Profit draws attention to the recent exponential growth of the altcoin market, with the market capitalization rising from $300 billion to nearly $800 billion between October 2023 and March 2024, representing a 150% increase in just five months.
Corrections following such significant growth are considered normal, but can prove challenging for retail investors. The recent 25% correction, bringing the market capitalization at around $550 billion, it is considered a healthy adjustment by the analyst.
Doctor Profit believes that altcoins have almost bottomed out and are poised for another substantial surge, potentially reaching a market capitalization of $1 trillion and setting new all-time highs.
The analyst parallels the current market situation and previous cycles, highlighting the repetitive pattern of lateral movement and landfills followed by explosive growth. Doctor Profit identifies several altcoins with optimal buying levels based on current prices and expected retracements.
For example, the native cryptocurrency of the metaverse 3D game, The Sandbox (SAND), is currently trading at $0.31. Doctor Profit suggests that a potential retracement of $0.22 would represent an optimal buy zone.
Another altcoin, Stacks (STX), a Bitcoin Layer 2 token, is currently trading at $1.61. Doctor Profit recommends a bearish target and buy zone of $1.48. Likewise, Arbitrum (ARB), a Level 2 marker, is currently trading at $0.78, with losses of more than 10%. Doctor Profit identifies $0.61 as the best buy zone for this token, suggesting further losses in the coming days.
A mid-July rally is planned
Moving on to larger altcoins, Doctor Profit analyzes Ethereum (ETH), the second largest cryptocurrency. Despite being the largest altcoin, Ethereum has seen a decline of 3%, with the current trading price at $3,430. Doctor Profit analysis suggests a potential decline towards $2,890, indicating an entry point for a long position.
Binance Coin (BNB), which recently reached a new historic high of $725, should retrace almost 50% to $396, representing the best entry point according to the expert. Currently, BNB is retraced at $585.
Doctor Profit also notes that other altcoins expected to retrace substantially include Optimism (OP), the Sei token (SEI), Toncoin (TON), Notcoin (NOT), and Omni (OMNI).
These altcoins have seen price drops of between 8% and 17%, reflecting investor sentiment. Doctor Profit provides specific price targets and optimal buying levels for these altcoins.
Doctor Profit advises caution due to potential “market maker manipulation” and order placement at the same levels. The analyst sets orders 3-5% higher or lower than the identified optimal buying levels to avoid missing out.
Finally, Doctor Profit highlights the upcoming launch of the Ethereum ETF on July 2nd. While he does not expect a significant increase on that day, similar to the launch of the Bitcoin ETF, the analyst expects a sideways or bearish trend for altcoins over the next 3-4 weeks.
However, a significant reversal and the start of a new altcoin rally is expected by mid-July. The analyst points out that altcoins are currently low and only a few will succeed. Based on the analysis provided, Doctor Profit believes that the altcoin market cap is 10-15% away from its bottom, making it an opportune time to invest for long-term gains.
Featured image from DALL-E, chart from TradingView.com