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the The cryptocurrency market has seen some recovery. Over the past few days, the weekend has been one of its most bullish periods. However, despite the notable rise in the crypto market, crypto analyst Alan Santana has warned of a potential crash that could send the market into a tailspin. If such a crash occurs, the crypto market could see around half of its market value lost, which could signal the start of another long-term bear market.
Why is the cryptocurrency market facing problems?
In analysis subscriber On TradingView, crypto analyst Alan Santana explains why he thinks the market could be in trouble. According to the crypto analyst, this is because the Bitcoin price is entering a capitulation phase and this could impact the entire market. Santana refers to this as the “Bitcoin Capitulation Event 2024,” which poses a threat to the crypto market as a whole.
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This comes because there were a lot of Withdrawal from the cryptocurrency market Lately, this money is not only coming from Bitcoin, but a lot of money is being withdrawn from altcoins as well, according to the analyst.
The result of this continued withdrawal is the fact that prices Alternative currencies “Cryptocurrencies have not been able to maintain their upward trend. “Many altcoins were looking good and staying strong even as Bitcoin’s price rose or fell, but now everything is starting to slow down. This is the clearest sign ever,” said Alan Santana.
After that, the crypto analyst predicts a “clear” collapse of the crypto market. As for the lowest level it could reach, the chart shows a drop of almost 50% from its current level of around $2.2 trillion to $1.26 trillion, which would take it back to levels not seen since 2022.
How will altcoins react to this collapse?
Expanding on the expected market crash, the crypto analyst revealed his belief that the altcoin market will react to the crash. In what he called the “crypto end,” Santana noted that the market is currently experiencing the calm before the storm.
He doesn’t believe that calls for another bull run and that Bitcoin could hit $100,000 are true. Instead, he expects prices to start falling and billions of dollars of traders will be liquidated “in the blink of an eye.”
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However, in the wake of this collapse, the cryptocurrency analyst expects that Bitcoin will hit a new low Before it goes up again. In this case, Santana believes the leading cryptocurrency will finally enjoy long-term growth. “The whole dynamic should play out in the next week or three weeks,” he said. “It’s interesting to see the biggest undervaluation in the history of life. It will be the most interesting event of all, to see the next crash and the global reactions.”
Featured image created using Dall.E, chart from Tradingview.com