Altcoins
Altcoins Poised for Major Rally After Massive Chase; Ethereum Signals Upside
Bitcoin is currently in a decent but mixed position, but it faces a critical barrier that it needs to overcome. It’s not much different for altcoins. Wolves of Cryptocurrency Analyst Crypto identifies a five-stage pattern in the altcoin market.
First, the market bottoms out during the bear market. Then, it tops out against the bear market resistance. After that, it retests the bear market resistance and consolidates. The fourth step is to break through the bear market resistance and reverse it. Finally, the market breaks through the previous all-time high and enters an altcoin season.
During the recent correction, many altcoins suffered significant losses, and some are unlikely to ever recover. However, the analyst sees this as a massive hunt, preparing the market for a possible altcoin season.
Are we close to an altcoin season?
During altcoin season, Bitcoin’s dominance declines as investors turn to altcoins in search of higher returns. This pattern occurred in the previous cycle, and the current cycle appears to be following a similar trajectory. If the market manages to break through stage four, a parabolic bull market with an explosive altcoin season could ensue.
The recent deviation in market structure has raised concerns, including the break below the bull market support band and the ascending support line. However, the analyst believes that the structural trend may still be intact. Historically, these support levels have held during previous cycles, but their recent break indicates a potential change in market dynamics.4
The market is awaiting authorization
Despite this deviation, the altcoin market needs a new upward move to confirm the bullish trend. Ethereum, following a similar pattern, has not broken below its low, showing even greater bullish potential.
The analyst remains bullish on the macroeconomic front regarding cryptocurrencies. He suggests that breaking out of key indicators will provide a maximum release, ensuring that the market is not simply experiencing a resistance-support reversal.