A top analyst predicts the end of the Bitcoin (BTC) bull market in 2021. altcoin details the mechanics behind its decline. The analyst, nicknamed Pentoshi, says momentum is what moves markets in X. According to the analyst, crypto markets were launching new altcoins at such a high rate that it depleted demand and allowed the momentum to go the other way.
“I think it was mostly a simple supply-demand dynamic. We got to the point where a huge number of new coins were being released every day, and each one required more and more liquidity to support it. At one point, around $200 million a day in new money was needed to support current prices. So supply suppresses demand and since everyone is getting into this business, there is not enough passive bid and demand or liquidity on the books and we are experiencing these violent downward movements. “We reached a point of balance and then the other team temporarily took control.”
Investors use it to track the value of altcoin markets. TOTAL3It fell from its highest level of $788.85 billion in 2024 to $563.85 billion, a decrease of approximately 30%.
Even amidst the market-wide correction, Pentoshi crypto- He emphasizes that the bull market is still intact.
“I think this is not a macro summit, just a local summit.
A bull market always ends when supply becomes infinite and there is no one left to buy. In my view, we’re not there yet. I wish you good luck and prosperity over the next few weeks.”
Taking a closer look at TOTAL3, the widely followed analyst shares a chart that suggests it will find support around $600 billion before recovering and rising to a $1 trillion value.
“All in all, I think this is the beginning of a big new opportunity. What will change this is if BTC loses its market structure or we experience massive BTC outflows from exchange traded funds (ETFs). We haven’t seen that yet and it could happen. They can go either way.
For now, this is just one of several corrections above 30% that we will experience along the way, as in previous cycles.”
As we reported as Koinfinans.com, TOTAL3 is traded at $620 billion at the time of writing this news.
