Renowned crypto analyst Doctor Profit recently released “The big altcoin report” for the third quarter of the year, suggesting further downward movement for the market.
Based on historical performance and the current state of the market, Doctor Profit warns of an impending altcoin market crash triggered by an episode of uncertainty and a recent price correction in the top 100 cryptocurrencies, led by Bitcoin (BTC).
However, the analyst remains optimistic, highlighting potential buying opportunities and optimal entry points for several top altcoins.
Altcoin Market Correction
Doctor Profit draws attention to the altcoin market’s recent exponential growth, with market capitalization surging from $300 billion to nearly $800 billion between October 2023 and March 2024, representing a 150% increase in just five months.
Corrections following such significant growth are deemed normal but can prove challenging for retail investors. The recent correction of 25%, bringing the market cap to around $550 billion, is regarded as a healthy adjustment by the analyst.
Doctor Profit believes that altcoins have nearly reached their bottom and are poised for another substantial rise, potentially reaching a market cap of $1 trillion and setting new all-time highs.
The analyst parallels the current market situation and previous cycles, emphasizing the repetitive pattern of sideways movement and dumps followed by explosive growth. Doctor Profit identifies several altcoins with optimal buying levels based on their current prices and expected retracements.
For instance, the native cryptocurrency of the 3D metaverse game, The Sandbox (SAND), is currently trading at $0.31. Doctor Profit suggests a potential retracement of $0.22 would present an optimal buy zone.
Another altcoin, Stacks (STX), a Bitcoin Layer 2 token, currently trades at $1.61. Doctor Profit recommends a downside target and buy zone of $1.48. Similarly, Arbitrum (ARB), a Layer 2 token, is currently trading at $0.78, with losses of over 10%. Doctor Profit identifies $0.61 as the best-buy zone for this token, suggesting further losses in the coming days.
Mid-July Rally Forecasted
Moving on to larger altcoins, Doctor Profit analyzes Ethereum (ETH), the second-largest cryptocurrency. Despite being the largest altcoin, Ethereum has witnessed a 3% drop, with the current trading price at $3,430. Doctor Profit’s analysis suggests a potential decline towards $2,890, indicating an entry point for a long position.
Binance Coin (BNB), which recently reached a new all-time high of $725, is expected to retrace almost 50% to $396, presenting the best entry point according to the expert. Currently, BNB has retraced to $585.
Doctor Profit further notes that other altcoins expected to retrace substantially include Optimism (OP), the Sei (SEI) token, Toncoin (TON), Notcoin (NOT), and Omni (OMNI).
These altcoins have recorded price drops ranging from 8% to 17%, reflecting investor sentiment. Doctor Profit provides specific price targets and optimal buying levels for these altcoins.
Doctor Profit advises caution due to potential “market maker manipulation” and order placements at the same levels. The analyst sets orders 3-5% higher or lower than the identified optimal buying levels to avoid missing out.
Lastly, Doctor Profit highlights the upcoming Ethereum ETF launch on July 2nd. While not expecting a significant pump on that day, similar to the Bitcoin ETF launch, the analyst predicts a sideways or bearish trend for altcoins in the next 3-4 weeks.
However, a significant reversal and the start of a new altcoin rally are anticipated by mid-July. The analyst emphasizes that altcoins are currently low, and only a few will succeed. Based on the provided analysis, Doctor Profit believes that the altcoin market cap is 10-15% away from its bottom, making it an opportune time to invest for long-term gains.
Featured image from DALL-E, chart from TradingView.com
