Bitcoin and the overall altcoin market are bleeding once again. Michaël van de Poppe (@CryptoMichNL), the crypto market expert, says that the present retreat is a good thing since it gives investors an opportunity to be ready for the next big rise.
Bitcoin and Ethereum have both gone back down after making big gains, and the whole market for altcoins is exhibiting signs of stress. He says that the correction might lead to stability in August, after which key assets would start to gain pace again.
Van de Poppe’s comments show a trend that happens a lot: after big price jumps, there is frequently a period of consolidation, during which patient investors can buy additional tokens at better prices.
He says that the market is still in the early stages of that corrective phase, so the present price action should be seen as a chance to get in rather than an indication of a bigger problem.
Window for Market Correction and Accumulation
Bitcoin has dropped to approximately $114,700, which is about 5% less than its previous high of about $119,000. Ethereum has done the same thing, dropping 7.5% from its recent high of $3,850 to roughly $3,600.
These drops have helped ease some of the short-term overbuying and taken in some of the liquidity that was probably stuck in lower positions.
Van de Poppe thinks that this drop might be the start of a time of stability, especially if prices stay inside a certain range. For traders and investors, the correction is a chance to build up their core positions in Bitcoin, Ethereum, and altcoins before the price goes up again.
Altcoins Under Pressure While Bitcoin Shows Relative Strength
The situation is not as good for other cryptocurrencies outside Bitcoin and Ethereum. The whole market capitalization, without counting the two biggest assets, is about $966 billion. This shows that the altcoin market is bleeding more.
Even though altcoins are weak, Bitcoin’s dominance is still high at 62%. This means that investors are still moving money into the relative safety of the big asset.
That strength in dominance makes the idea of a comprehensive market pump less likely and instead points to a temporary preference for the biggest, most liquid cryptocurrencies while other sectors take a break from their recent pumps.
Outlook for August and the Next Leg Up
Van de Poppe said that August may be a month for consolidating and digesting the current gain. If the market stays stable during this time, it might lay the stage for both altcoins and Bitcoin to rise again later in the month.
If the stabilization works, it will probably bring back confidence, and money will flow back into riskier assets after the correction is over.
For van de Poppe’s idea of a constructive pause before the next rising trend to be true, the broader market needs to be able to handle the current weakness without a lot of sell-offs.
