The Tipping Point: Altcoins Bull Market Incoming, Predicts Analyst – Here’s Why
14 Februar 2024 - 1:00AM
NEWSBTC
A renowned crypto analyst on X has recently sparked discussions
within the altcoin community by predicting an imminent “altcoins
bull market.” This anticipation is rooted in observing a notable
pattern in the altcoin market cap chart. Accumulation Pattern
Suggests Bull Market Incoming According to the crypto analyst Mags
on X, the market capitalization of cryptocurrencies, excluding
Bitcoin, has reached a crucial stage in the Wyckoff Accumulation
Pattern, hinting at potential upward momentum shortly. Related
Reading: BREAKING: Bitcoin Price Hits $50,000 – The Big Question:
How Much Higher Can BTC Go? For context, the Wyckoff Accumulation
Pattern, named after Richard D. Wyckoff, a pioneering early
20th-century trader, is used to identify the stages of a market
bottom when institutional investors accumulate an asset before the
start of a new uptrend. The Wyckoff Accumulation pattern typically
unfolds in five phases (A), designed to highlight how large
professional interests prepare an asset to be moved into a
substantial markup phase. Phase A signals the halt of the previous
downtrend, marked by initial demand indicating that the market is
ceasing to make lower lows. Phase B is characterized by testing, as
institutions absorb supply amid volatile price action, including
potential false breakouts. Phase C features a key test of the lows
through a “Spring” or “Shakeout,” allowing smart money to acquire
an asset from retail holders at lower prices. This phase confirms
the market’s readiness to advance. Phase D sees the start of the
uptrend as demand takes control, evidenced by a pattern of higher
highs and higher lows. Finally, Phase E is the breakout phase,
where the market embarks on a new uptrend, rewarding the
accumulation efforts of large interests as the price significantly
appreciates. According to the Mags, the altcoin market cap has
entered Phase ‘E’ of this pattern, characterized by a transition
from accumulation to a potential price surge. The #Altcoin Market
Cap has broken out of a massive Wyckoff Accumulation Pattern. Price
is about to enter Phase “E’ which is where Alts will go vertical.
Altcoin Bull Market Incoming 🔥 pic.twitter.com/m2XeSoqGIm — Mags
(@thescalpingpro) February 12, 2024 Bitcoin vs. Altcoins Market
Dominance Furthermore, the Altcoins Season Index, a metric provided
by Blockchain Center, currently stands at 49, implying a slight
preference for Bitcoin in the market. However, the stage is set for
altcoins to outshine Bitcoin in the coming months. Notably, the
Blockchain Center posits that an altcoin season is confirmed if 75%
of the top 50 altcoins perform better than Bitcoin over 90 days.
Despite Bitcoin’s recent approach to the $50,000 mark, it has not
sustained a close above this level, signaling an opportunity for
altcoins to capture market interest. Though trailing slightly
behind Bitcoin, the total market cap for altcoins hints at a
burgeoning competition that could reshape the market landscape.
However, recent market trends have showcased Bitcoin’s notable
performance compared to altcoins, with a more than 15% surge in the
past week, leading its price to exceed $50,000 yesterday.
Meanwhile, Ethereum has seen a 13% increase over the past week, yet
it still trades below the $2,700 mark. Related Reading: Ethereum
ETF: Franklin Templeton Enters The Fray As ETH Rallies BNB and XRP
recorded gains of 6.4% and 4.1%, respectively, during the same
timeframe. However, Solana and Cardano have outperformed these
figures, boasting gains exceeding 10%, trailing Bitcoin’s recent
surge. Yet, the aggregate market cap of altcoins, positioned just
below $900 billion, against Bitcoin’s slightly higher valuation of
above $950 billion, underscores a brewing contest for market
dominance. Featured image from Unsplash, Chart from TradingView
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