Altcoin Market Poised for Historic Bull Run as Analyst Flags End of Bear Cycle Amid Liquidation Risks

Crypto analyst Michaël van de Poppe has declared that the altcoin market is on the cusp of a major bullish reversal, signaling the potential end of what he describes as the longest bear market in altcoin history. In a recent analysis, van de Poppe highlighted that the monthly MACD indicator is about to cross, mirroring conditions seen in early 2020 just before a historic crypto rally. He emphasized that the current consolidation phase resembles final shakeouts observed during the FTX collapse and COVID-19 crash, both of which preceded strong recovery phases.

Van de Poppe cautioned investors against capitulating now, stating, "Selling now is the dumbest decision ever as we're about to turn upwards on all indicators." He pointed out that every signal suggests a cyclical shift is imminent, with altcoins likely to soon outperform Bitcoin as the next leg of the market cycle unfolds.

However, amid this optimistic outlook, specific altcoins face heightened liquidation risks in the fourth week of October. Solana (SOL) dropped below $200, leading to over $132 million in SOL being moved to exchanges, indicating selling pressure. If SOL recovers above $214, more than $1 billion in short positions could be liquidated; a drop below $165 risks $800 million in long liquidations. Despite this, potential catalysts include ecosystem events and a double-bottom pattern targeting $250.

Bittensor (TAO) has shown resilience, rebounding strongly after recent market dips and gaining institutional confidence with Grayscale allocating over 33% of its Decentralized AI Fund to TAO. If TAO rallies to $500, short sellers could face over $20 million in losses; a decline to $381 might liquidate $18 million in long positions. Analysts compare TAO's structure to Zcash's early growth, hinting at upcoming bullish momentum, especially with a halving event in December 2025.

ChainOpera AI (COAI) experienced a volatile surge, with its market cap exploding to over $5 billion before plummeting nearly 90% from its all-time high of $46. A rebound above $7 could trigger $11.5 million in short liquidations, while a drop to $3.73 risks $2.7 million in long liquidations. Despite the correction, renewed interest in AI-related projects suggests potential for recovery and short squeezes.