Felix Hartmann, founder of Hartmann Capital, has projected a challenging period ahead for altcoins, suggesting that most will likely see a continued downtrend until late January 2025. Hartmann observed that while a few altcoins might experience short-lived gains, the majority are expected to either consolidate or gradually lose value over the next two to six weeks. “Not much alpha in chasing alts here [in my opinion] as many just topped after 2-3x moves in a week,” he remarked.

Over the past 24 hours, the altcoin market has faced sharp declines, with liquidations of long positions amounting to $481.62 million, according to CoinGlass data. Some of the biggest losses among the top 100 cryptocurrencies include Ethena, which dropped 10.46%; Pepe, down 10.62%; and Bonk, which fell 8.59%, based on CoinMarketCap statistics.

Bitcoin, which reached a historic high of $100,000 on Dec. 5, has since struggled to maintain the six-figure milestone. It dipped below $100,000 on Dec. 9 and is currently trading at $96,270, a 1.5% drop in the last 24 hours. Despite this, Hartmann believes Bitcoin has a “fair chance” of retesting the $99,000 level, attributing the potential rise to “short squeezes” that could drive further price action.

CryptoSea co-founder Daan de Rover echoed similar sentiments in a Dec. 10 post on X, pointing to liquidity accumulating above Bitcoin’s current price levels. “There’s a lot of liquidity building up on the topside for Bitcoin. We all know what’s next,” he commented. If Bitcoin surpasses $99,000 with a 2.41% increase, approximately $1.53 billion in short positions could be liquidated, possibly leading to additional upward momentum.

Meanwhile, pseudonymous trader “Mister Crypto” expressed optimism about the market’s trajectory, describing the current downturn as a necessary shakeout before significant price surges. “This was the final shakeout before the real exponential breakouts,” the trader noted in a Dec. 10 post.

Despite the recent volatility, Hartmann suggested it might be a suitable moment for investors to adopt a long-term approach. “Perfect is the enemy of good, hence it seems like an okay time to bring long bias back,” he stated. This cautious optimism comes amid broader uncertainty in the crypto market as traders weigh potential recovery scenarios for Bitcoin and altcoins alike.