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- Crypto analyst predicted that the altcoins could reach $680+B by the end of 2023.
- Bollinger band trend indicator shows a downtrend for the altcoin market cap.
- Alcoin market cap may consolidate between $463B and $700B during the next year.
Crypto Analyst Captain Faibik tweeted that he has been accumulating altcoins for the past 6-8 months, expecting a rally between November and December. As per the analyst’s view, the crypto market cap has been trading inside a falling wedge as shown.
I've been Accumulating Altcoins for the past 6-8 Months, and I'm still Expecting an Altcoin Rally in Nov-Dec, similar to Q1 2023.#Crypto #Altcoins pic.twitter.com/kHWgXY6OvZ— Captain Faibik (@CryptoFaibik) October 16, 2023
Once the falling wedge is completely formed, Faibik expects the altcoin market cap to reach $680B. The analyst expects the market cap to increase by 25% from the upper trend line of the falling wedge. Moreover, the chart below gives more insights into Faibik’s forecast.
Altcoin Market cap/USD 1-Day Chart (Source: Tradingview)
As rightly pointed out by Faibik, the altcoin market cap should spike, given that it breaks out of the falling wedge conventionally. Additionally, Faibik’s target of $680B is supplemented by the transposition of the height of the wedge at the initial phase of formation to the upper trendline of the falling wedge.
Although Faibik’s target is correct, the question is, will the altcoin market cap break out conventionally from the falling wedge? As per the Bollinger band trend indicator, it could be noted that it is on a downtrend. However, the altcoin market cap has ricocheted off of the lower Bollinger band and it is rising. This rise may continue with the possibility of the altcoin market cap rebounding off of the upper and lower trend lines.
Altcoin Market Cap/USD 1-Week Chart (Source: Tradingview)
When looking at the longer timeframe for the altcoin market cap, it could be noted that since 2022 November, it has been fluctuating between the $463B and $698B region. This motion of moving sideways may continue for the next year–2024. But, come 2025 there could be a spike.
The above thesis is based on the observation made on BTC’s previous halving. The altcoin market cap increased in 2021 after BTC’s halving in 2020. As such, 2025 which is the year after halving in 2024, may see a spike to $1.25T.
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