THE crypto market has seen some recovery over the past few days, with the weekend shaping up to be one of the 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 soaring. This crash, if materialized, could see the crypto market lose around half of its market cap, something that could signal the beginning of another prolonged bear market.
Why the Crypto Market Is in Trouble
In the analysis shared On TradingView, crypto analyst Alan Santana outlines why he believes the market could be in trouble. According to the crypto analyst, this is because the price of Bitcoin is entering capitulation and this could affect the entire market. Santana refers to this as the “Bitcoin Capitulation Event in 2024,” which poses a threat to the crypto market as a whole.
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This is because there have been many withdrawal from the crypto market in recent times. This money is not only coming from Bitcoin, but a lot of money is also being withdrawn from altcoins, according to the analyst.
The result of this constant withdrawal is that the prices of altcoins failed to maintain the uptrend. “Many altcoins looked good and remained strong even as Bitcoin went upor down, but now everything is starting to slow down. This is the most telling sign of all,” said Alan Santana.
After that, the crypto analyst expects an “obvious” crypto market crash. As for the lowest level it could reach, the chart shows a nearly 50% drop from its current level of around $2.2 trillion to $1.26 trillion, putting it back at levels not seen since 2022.
How will Altcoins react to this crash?
Further expanding on the expected market crash, the crypto analyst revealed how he believes the altcoin market will react. In what he calls “The Cryptocurrency Apocalypse,” Santana highlights that the market is currently experiencing the calm before the storm.
He does not believe that calls for another bull run are accurate and that the Bitcoin Price Could Reach $100,000. Instead, he expects prices to start falling and billions of dollars to be wiped out from traders “in the blink of an eye.”
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However, after this failure, the crypto analyst predicts that Bitcoin will hit a new low before rising again. In that case, Santana believes the pioneering cryptocurrency will finally see long-term growth. “All the dynamics should play out within 1-3 weeks,” he said. “Interesting to watch is the biggest understatement in the history of life. It will be the most fascinating event ever, to see the next crash and the world’s reaction.”
Featured image created with Dall.E, chart from Tradingview.com