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Analyst Predicts Imminent Altcoin Bull Market, Market Cap in Critical Phase

Published 13/02/2024, 07:44
© Reuters.  Analyst Predicts Imminent Altcoin Bull Market, Market Cap in Critical Phase
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Coin Edition -

  • An analyst on X claims that the altcoin bull market is coming soon.
  • The analyst pointed out that the altcoin market cap is in a critical phase of the Wyckoff Accumulation Pattern.
  • The Altcoin Season Index by Blockchain Center currently reads 47.

The altcoin bull market is coming soon, claims an analyst on social media platform X, while noting that the market capitalization of all the digital assets other than Bitcoin has broken out of a “massive” Wyckoff Accumulation Pattern.

As per the X post by Mags, a Bitcoin holder since 2016, the market capitalization of altcoins has entered phase ‘E’ of the Wyckoff Accumulation Pattern, which suggests a significant surge in the near future.

Wyckoff Accumulation Pattern (Source: X)

For the uninitiated, the Wyckoff Accumulation Pattern was created by Richard Wyckoff, a famous stock trader, in the early 20th century and is often used to determine potential accumulation phases in financial markets, including digital assets.

The analyst highlighted the accumulation pattern followed by the market cap of altcoins between April and December 2023. This period was marked by consistent price ranges and low trading volume, and the pattern around December suggests that “Alts will go vertical.”

Notably, the Altcoin Season Index by Blockchain Center currently reads 47, adding that the market is currently slightly biased towards Bitcoin (BTC). It is important to note that Bitcoin touched $50,000 but failed to close a candle above the price level on Monday. Additionally, Blockchain Center says that if 75% of the top 50 altcoins outperform the price action of Bitcoin within a 90-day period, an altcoin season can be confirmed.

Observing the overall crypto market, Bitcoin has given returns of 16.37% in the past seven days, while Ethereum is up more than 18% in the same duration, according to CoinMarketCap’s data. Altcoins like XRP and BNB are up just 4.48% and 8.12% in the last seven days, respectively.

Meanwhile, the dominance of Bitcoin stands at 52.5%, while Ether has a dominance of 17%. During the altcoin season, the dominance of the leading digital assets generally drops while altcoins take charge, and their market capitalization skyrockets.

The post Analyst Predicts Imminent Altcoin Bull Market, Market Cap in Critical Phase appeared first on Coin Edition.

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