The recent period has been painful for altcoin traders, seeing losses exceeding 60%. Many cryptocurrencies have dipped below last year’s low levels, while risk appetite has notably increased, emboldening bearish traders. Is there a possibility that the days when bears trembled in fear will return?
Will Cryptocurrencies Rise?
The Federal Reserve’s interest rate decision is set to be announced this Wednesday. A minor adjustment to tariffs will take effect on April 2, with several factors encouraging bearish sentiment. This environment allows bears to sleep soundly with massive short positions open at a liquidation price of $86,000. A sudden rise to the $100,000 region could liquidate billions in aggressive short positions, yet bears remain remarkably calm.
This calmness is expected to reverse at some point. While over 80% declines in cryptocurrencies are a reality, rises exceeding 800% also happen.
In his latest evaluation, Michael Poppe suggested that a turnaround in altcoins could begin with the example of OP Coin.
“A significant upward deviation in OP signals a reversal is underway. This looks promising.”
Long-Term Cryptocurrency Investors
Many short-term investors are overly cautious, especially following the events surrounding Trump. Additionally, the liquidity issues within the Solana network have contributed to the chaos experienced in recent months. Despite these challenges, long-term investors continue to accumulate. Ali Charts noted;
“HODLers are accumulating! Long-term holders have collected 179,000 Bitcoin (BTC) in the last month.”
Titan of Crypto shared a four-hour chart to support bullish hopes.
“Bitcoin Short-Term Update (4H)
BTC is approaching the upper boundary of the declining Kumo Cloud, known as SSB (Senkou Span B). Since SSB is the strongest Ichimoku line, it might act as resistance. However, a breakout will confirm upward momentum. This is the key level to watch right now.”
