Pseudonymous cryptocurrency trader smileycapital provided a comprehensive outlook on the current crypto market, focusing on the bottoming process of altcoins, the future of Ethereum (CRYPTO: ETH) and the range-bound nature of Bitcoin (CRYPTO: BTC).

What Happened: Smileycapital believes that altcoins are in a high time frame (HTF) bottoming process. "Sellers’ momentum is weaker as weeks go by," he remarked, predicting that this trend will continue into Q3, with altcoins starting to uptrend around September.

According to him, altcoin to Bitcoin ratios are also low, indicating that altcoin prices in USD shouldn’t fall much further. He advises looking for HTF formations, particularly 3-4 taps on daily and weekly charts, as some altcoins might start to outpace major coins, hinting at market shifts.

• Smileycapital is optimistic about Ethereum's performance against Bitcoin, despite the poor timing for an Ethereum ETF launch. He predicted that initial ETF flows may not be large until Q4 which could align with the altcoin bottoming process. This could trigger a renewed interest in the market.
• Bitcoin is expected to remain range-bound, potentially breaking out in October-November. The influencer price targets of $30,000 to $50,000 are likely off the mark. The trader hints at significant price compression and warns, "You don’t want to see this trading under $56-57,000," unless a black swan event occurs.

Also Read: Top Trader Went All-In On Altcoins Only To See Them Crash: ‘This Is The Time That You’d Want To Risk More’

Why It Matters: For the active traders, Smileycapital advises that until market conditions shift swinging all positions long is not advisable. He stated, "Take profit. Good short? Take profit. Good long? Take profit."

For the passive investors, he suggested optimism is key and recommends not over-rotating investments. "Think alts at these levels are very attractive for long-term holds," he notes, suggesting a gradual dollar-cost-averaging (DCA) strategy.

Smileycapital's nuanced crypto market view suggests active traders should focus on profit-taking and adaptive strategies. Meanwhile, passive investors should maintain their conviction and consider long-term positioning in undervalued altcoins.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Top Crypto Analyst Sees Ethereum, Altcoin Reversal Coming: ‘Back Up In The Next Few Weeks’

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.