- Altcoins are likely to experience a decline or consolidation through January 2025, says Felix Hartmann.
- Bitcoin may retest $99,000 driven by short squeezes, impacting $1.53 billion in positions.
- Traders predict a shorter consolidation period, with a potential new Bitcoin rally in Q1 2025.
The cryptocurrency market is witnessing mixed movements, with altcoins showing signs of prolonged consolidation or declines while Bitcoin hovers near pivotal price levels. Felix Hartmann, founder of Hartmann Capital, shared his perspective on the state of the altcoin market in a December 10 post on X, formerly known as Twitter. According to Hartmann, most altcoins are unlikely to sustain their recent momentum.
“Some alts may continue running briefly, but the majority are likely to slow bleed or consolidate for 2–6 weeks,” Hartmann noted. He added that many altcoins had already peaked following 2–3x gains in a single week, suggesting limited opportunities for further immediate upside.
Bitcoin’s Price Movements Keep Traders Alert
Bitcoin, currently trading at $96,663, has retreated from its milestone $100,000 level reached on December 5. Traders are closely monitoring its next potential move, with Hartmann speculating that Bitcoin could retest $99,000, primarily driven by short squeezes. CryptoSea co-founder Daan de Rover pointed out a buildup of liquidity on Bitcoin’s topside, hinting at a possible upward breakout.
“If Bitcoin surpasses $99,000, around $1.53 billion in short positions will be at risk of liquidation,” CoinGlass data revealed. Other analysts noted that Bitcoin tends to see significant movements—between 30% and 50%—after breaking out of extended periods of consolidation.
Altcoin Market Faces Additional Setbacks
Altcoins have experienced sharp declines in the past 24 hours, with approximately $481.6 million in long positions liquidated, according to CoinGlass. Among the top 100 cryptocurrencies, Ethena (ENA), Pepe (PEPE), and Bonk (BONK) were among the hardest hit, falling 10.5%, 10.6%, and 8.59%, respectively.
Pseudonymous trader Mister Crypto called the recent downturn a “final shakeout before exponential breakouts,” signaling optimism for altcoin performance in early 2025. Meanwhile, Daniel Cheung, co-founder of Syncracy Capital, highlighted the market’s shift toward short-term trading strategies, which have added volatility to the space.
Market analysts, including Santiment, warn that fear-driven selling by retail traders could prompt sharp recoveries. The evolving dynamics suggest that while immediate opportunities in altcoins appear limited, the broader market is gearing up for potential volatility and growth in the first quarter of 2025.
