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.
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.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.
The 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 🔥 — Mags (@thescalpingpro)
Bitcoin vs. Altcoins Market Dominance
Furthermore, the Altcoins Season Index, a 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.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.
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