Will Bitcoin and Altcoins Face a Sharp Drop on September 4th, Similar to the July and August 4th Declines?

Will Bitcoin and Altcoins See a Sharp Drop on September 4th?

Analyst Miles Deutscher suggests that Bitcoin may be nearing the end of its 'capitulation phase.' However, he believes BTC could trade sideways for a few more weeks before establishing a clear uptrend. He notes that any major pullback during this phase could create an opportunity to accumulate altcoins.

Deutscher analyzes the "Total 3" index, which represents the altcoin market excluding Bitcoin and Ethereum. He identifies a critical breakout level at $560 billion. A drop below this level could indicate a bearish retest, potentially leading to another sharp decline similar to those witnessed on July 4th and August 4th. Such a drop would present a buying opportunity at the bottom of the red zone, historically a favorable area for altcoin purchases.

Deutscher discusses specific altcoins:

• Sui (SUI): Key levels include $0.90 (high timeframe) and the August 4th low. Investors may consider buying after a confirmed uptrend or during liquidation events in the support zone.
• Pepe (PEPE): Similar to Sui, consider waiting for a confirmed uptrend or bidding in the support zone around the August 4th liquidation wick.
• Solana (SOL): Despite negative sentiment, Deutscher sees potential buy zones between $120 and $130, with $90 as a worst-case scenario. He believes Solana remains a strong performer long-term.