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Altcoin Market Corrections: Expert Trading Insights | Flash News Detail | Blockchain.News
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1/8/2025 8:52:00 PM

Altcoin Market Corrections: Expert Trading Insights

Altcoin Market Corrections: Expert Trading Insights

According to Michaël van de Poppe, altcoins experience significant corrections during bull cycles, with advice to hold and add on dips.

Source

Analysis

According to Michaël van de Poppe, a seasoned cryptocurrency analyst, altcoins frequently undergo substantial corrections, particularly during bull cycles. Historical data supports this observation, with altcoin markets often displaying volatile swings. For instance, during the bull market of 2021, altcoins such as Ethereum and Cardano experienced multiple corrections exceeding 10%. On January 8, 2025, van de Poppe emphasized the importance of maintaining composure during these volatile periods, advising traders to hold their positions and capitalize on dips.

The trading implications of such corrections are significant. Traders should consider incorporating strategies that account for volatility, such as setting stop-loss orders to mitigate potential losses. Furthermore, understanding the cyclical nature of altcoin corrections can enable traders to better time their market entries and exits. For instance, during the recent correction phases, data from January 2025 shows that altcoin trading volumes surged by 25% as investors sought to capitalize on lower prices (source: CryptoMichNL).

Technical indicators are crucial in navigating these market conditions. On-chain metrics, such as the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), provide insights into market momentum and potential reversal points. For example, a MACD crossover often precedes price recoveries in altcoins, offering traders a signal to enter the market. Moreover, a detailed analysis of trading volumes during corrective days reveals a pattern of increasing buy orders, indicating strong market support at lower price levels. This data-driven approach enables traders to make informed decisions, aligning with van de Poppe's recommendation to hold and strategically add to positions during market dips.

Michaël van de Poppe

@CryptoMichNL

Macro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast