Altcoins
Altcoin Market Cap Set for 350% Explosion in Technical Setup Forms: Glassnode Founders
The founders of the analytics platform Glassnode predict that the altcoin market capitalization will increase by 350% after the recent correction.
Glassnode co-founders Jan Happel and Yann Allemann, who share the handle Negentropic on social media platform say The alternative market cap could form a similar structure in 2021 when there was a sudden retracement followed by a massive bull run.
Analysts use Elliott Wave Theory in their analysis, which states that an asset tends to rally in five waves.
“The crypto bull market continues. “Others” tracks cryptocurrencies, excluding the ten largest cryptocurrencies. Note that at the start of 2021 we experienced a strong correction. We believe this was a fourth wave. We are now seeing a similar sharp decline. More benefits are coming. This index and our Fibonacci levels give us [reason to believe] we could see an increase of around 350% from current levels.
The founders recently said Another bullish catalyst for the crypto market is the waning strength of the US Dollar Index (DYX).
According to analysts, the DXY likely printed a high earlier this month in an expanding diagonal pattern, implying that a significant downward move is underway, which could be a catalyst for a new bull market. for Bitcoin (BTC).
The founders also give their opinion on what they believe are the price impacts of spot BTC exchange-traded funds (ETFs). They say ETF investors are reactionary to falling prices, but not the cause.
“The significant volume traded by ETFs also highlights their potential as catalysts in the market, potentially driving both short-term price movements and long-term strategic shifts in investment and trading behavior . However, so far, large ETF outflows often align with notable price declines in the Bitcoin market, indicating that investors tend to react to existing downturns rather than causing them.
This suggests primarily reactive investor behavior during periods of market volatility, which is crucial for understanding the causality of price movements.
Bitcoin is trading at $66,434 at the time of writing, down slightly over the past 24 hours.
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