Altcoins Poised for Rally After CNH/USD Bottoms: Analyst
- Altcoins are likely to rally soon, after the CNH/USD chart forms a bottom, analyst Michaël van de Poppe says.
- Historical patterns indicate that Ethereum and altcoins surged after similar lows were seen on CNH/USD.
- If investor risk appetite returns, an altcoin breakout should be expected after months of stagnation.
Crypto analyst Michaël van de Poppe recently posted why altcoin prices are not moving on X and why this may change soon. Van de Poppe explained that one of the main reasons behind the slack in altcoin markets is that investors are cautious and are refraining from taking risks, instead sticking to the U.S. Dollar.
But van de Poppe notes that something very important could be happening now. He mentioned that in the past, when Ethereum (ETH) and other altcoins had their rallies, everything began after the CNH/USD (the Chinese Yuan against the U.S. Dollar) pair reached its lowest point.
This happened in July 2019. Back then, when CNH/USD bottomed out, the crypto markets, including Ether and altcoins, started surging.
Historical Patterns Suggest Altcoins Set to Surge
Fast forward to now, van de Poppe explains that the CNH versus USD chart has descended to a bottom this month. If history were to repeat itself once again, it might suggest that altcoins are about to reverse the current trend and begin climbing. In effect, he believes that the current low in the CNH/USD might ignite the next altcoin rally.
Source: X (@CryptoMichNL)
Van de Poppes sentiment is based on the idea that if the Chinese Yuan becomes stronger against the Dollar or if it stops weakening, investors might start taking risks again; thus leading to money flowing into cryptocurrencies.
Another crypto analyst with the X handle, BlackPro, also agreed with this view. He said that if this recent bottom in CNH/USD is indeed a real turning point, then perhaps this is the start of a fresh altseason, which is a period when altcoins, or cryptocurrencies other than Bitcoin (BTC), outperform the leading cryptocurrency and experience major price increases.
Although nothing in the markets is ever guaranteed, many traders are watching to see if this pattern will hold true again. If the CNH/USD truly has bottomed out with risk appetite returning, it might be a sign for the altcoin rally that has been greatly anticipated after a long and dull period in the altcoin market.
Read more: https://www.tronweekly.com/altcoins-poised-for-rally-after-cnh-usd-bottoms/
Text source: TronWeekly
