A prominent analyst, known for accurately predicting the end of the 2021 Bitcoin bull market, is now shedding light on the recent downturn in altcoins. Releasing his insights on the social media platform X, the pseudonymous crypto strategist Pentoshi explains that market momentum plays a crucial role in driving price movements. The rapid influx of new altcoins in the market led to a depletion in demand, causing a shift in momentum.
The analyst emphasizes that the imbalance between supply and demand dynamics within the crypto market triggered a significant drop in the value of TOTAL3, an index used to monitor the altcoin market. Despite the correction, Pentoshi assures his followers that this is not the end of the larger crypto bull market, suggesting that there is still room for growth. Looking ahead, he anticipates a potential recovery for TOTAL3, projecting a support level at $600 billion before reaching a $1 trillion valuation.
As TOTAL3 currently hovers around $620 billion, Pentoshi remains optimistic about the future outlook for the crypto market. He notes that while corrections are expected along the way, the broader uptrend is still intact. By pointing to key levels of support and potential rally targets, Pentoshi offers traders valuable insights into navigating the volatile altcoin landscape and seizing opportunities for profitable investments.