By Scott Matherson 1 September 2024 | 1:30 am

Crypto Market In Trouble As Analyst Predicts $1 Trillion Crash

The crypto market has seen some recovery over the last few days, with the weekend becoming one of its most bullish periods. However, despite the notable rise in the crypto market, crypto analyst Alan Santana has warned of a potential crash that could send the market spiraling. This crash, if materialized, could see the crypto market lose around half of its market cap, something that could signal the beginning of another drawn out bear market.

Why The Crypto Market Is In Trouble

In the analysis shared on TradingView, crypto analyst Alan Santana outlines why he believes that the market could be in trouble. According to the crypto analyst, this is because the Bitcoin price is entering capitulation and this could affect the whole market. Santana refers to this as “Bitcoin’s 2024 Capitulation Event,” which poses a threat to the crypto market as a whole.

This comes because there has been a lot of withdrawal from the crypto market in recent times. This money is not only coming from Bitcoin, but a lot of money is being pulled out of altcoins as well, according to the analyst.

The result of this constant withdrawal is the fact that the prices of altcoins have been unable to maintain their uptrend. “Many altcoins were looking good and remaining strong even while Bitcoin moved up, or down, but now everything is starting to slow down. This is the most revealing signal of all,” Alan Santana stated.

Following this, the crypto analyst expects an “obvious” market crash for crypto. As for how low it could go, the chart shows an almost 50% plunge from its current level of around $2.2 trillion to as low as $1.26 trillion, putting it back at levels not seen since 2022.

How Will Altcoins React To This Crash?

Expanding further on the expected market crash, the crypto analyst revealed how he believes the altcoin market will react. In what he refers to as “The Cryptocurrency Apocalypse,” Santana points out that the market is currently experiencing the calm before the storm.

He does not believe that the calls for another bull run are accurate and that the Bitcoin price could reach $100,000. Rather, he expects prices to start dropping and billions of dollars to be liquidated from traders “in a flash.”

However, following this crash, the crypt analyst forecasts that Bitcoin will hit a new low before rising again. In this case, Santana believes that the pioneer cryptocurrency will finally enjoy long-term growth. “The whole dynamic should play within 1-3 weeks,” he stated. “Interesting to watch is the biggest understatement in the history of life. It will be the most fascinating event ever, to see the upcoming crash and the worldwide reaction.

Crypto total market cap from Tradingview.com