This the cryptocurrency market has seen some recovery over the past few days, with the weekend becoming one of the most bullish periods. However, despite the noticeable gains in the cryptocurrency market, cryptocurrency analyst Alan Santana has warned of a potential crash that could send the market spiraling. This crash, if it materializes, could cause the cryptocurrency market to lose about half of its market capitalization, which could signal the start of another extended bear market.

Why the Cryptocurrency Market Is in Trouble

In the analysis common on TradingView, crypto analyst Alan Santana explains why he thinks the market could be in trouble. According to the crypto analyst, it’s because the price of Bitcoin is entering a capitulation state, which could affect the entire market. Santana calls this the “Bitcoin capitulation event of 2024,” which poses a threat to the entire cryptocurrency market.

This is because there were many withdrawal from the cryptocurrency market in recent times. This money is not just coming from Bitcoin, but a lot of money is also being pulled from altcoins, according to the analyst.

The result of this constant withdrawal is that prices altcoins they were unable to maintain their uptrend. “A lot of altcoins looked good and stayed strong even when Bitcoin was going up or down, but now everything is starting to slow down. This is the most revealing signal of all,” said Alan Santana.

After that, the crypto analyst expects an “obvious” crash for the cryptocurrency market. As for how low it could go, the chart shows a nearly 50 percent drop from its current level of around $2.2 trillion to just $1.26 trillion, a return to levels not seen since 2022.

How will altcoins react to this crash?

Elaborating further on the expected market crash, the crypto analyst revealed how he thinks the altcoin market will react. In what he calls the “cryptocurrency apocalypse,” Santana points out that the market is currently experiencing the placid before the storm.

He doesn’t believe the calls for another bull run are true and that Bitcoin could hit $100,000. Instead, he expects prices to start falling and billions of dollars to be wiped out of traders “in the blink of an eye.”

However, after this accident, the crypto analyst predicts that Bitcoin hits recent low before it rises again. In this case, Santana believes the pioneering cryptocurrency will finally see a long-term rally. “The whole dynamic should play out in the next 1-3 weeks,” he said. “It’s fascinating to watch the biggest understatement in the history of life. It’s going to be the most fascinating event in history, to see the crash coming and the reaction around the world.

Featured image created with Dall.E, chart from Tradingview.com