Altcoins
Altcoins Set for Major Rally After Huge Surge; Ethereum Signals Coming
Bitcoin is currently in a decent but mixed position, but it faces a critical barrier that it needs to overcome. It is not much different for altcoins. Cryptocurrency analyst Wolves of Crypto spots five-phase pattern in 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 out of the bear market resistance and flip it. Finally, the market breaks out of the previous all-time high and enters an altcoin season.
During the recent correction, many altcoins suffered significant losses, and some did not expect to recover. However, the analyst sees this as a massive flush-out, setting the market up for a potential altcoin season.
Are we approaching altcoin season?
During the altcoin season, Bitcoin’s dominance diminishes as investors move into altcoins in search of higher returns. This pattern occurred in the previous cycle and the current cycle seems to follow a similar trajectory. If the market can overcome step four, a parabolic bull market with an explosive altcoin season could occur.
The recent deviation in the market structure has caused concern, especially 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 awaits authorization
Despite the deviation, the altcoin market needs another move higher to confirm the bullish trend. Ethereum, following a similar pattern, did not fall below its low, showing even greater potential.
The analyst remains macro bullish on the cryptocurrency. He suggests that breaking key indicators will provide maximum clearance, ensuring that the market is not just experiencing a resistance-support reversal.