The cryptocurrency market is buzzing with anticipation as it potentially gears up for the much-awaited altcoin season. Riding the bullish momentum initiated by Bitcoin, a prominent crypto analyst has pinpointed the current market phase using the Wyckoff Cycle framework. This analysis indicates that altcoins are on the brink of a “parabolic run,” possibly ushering in the onset of the altcoin season.
Understanding the Wyckoff Cycle in the Current Market Phase
A crypto technical analyst, known as EtherNasyonal, has unveiled an insightful chart depicting the total crypto market capitalization, excluding Bitcoin. The chart utilizes the Wyckoff Cycle, a renowned framework for deciphering market behavior and trends. This cycle delineates four distinctive market phases: Accumulation, Markup, Distribution, and Markdown.
In the Accumulation phase, savvy investors, often referred to as “smart money,” start purchasing assets at lower prices, leading to price consolidation as the selling pressure diminishes. Upon the conclusion of this phase, the Markup phase takes center stage. Here, prices break free from the consolidation range and embark on an upward trajectory fueled by heightened demand.
The subsequent Distribution phase witnesses increased selling pressure, as smart money begins liquidating holdings, causing price corrections or stabilization. Finally, the Markdown phase occurs when selling pressure surpasses demand, initiating a downtrend.
Currently, the total crypto market cap stands at an impressive $2.9 trillion, according to TradingView. Based on these market phases, the analyst has divulged that the market is presently navigating the Markup phase, characterized by a surge in cryptocurrency prices. Looking ahead, the market is predicted to enter a re-accumulation phase in 2025, followed by another Markup phase in 2026, and a Distribution phase in 2027.
The chart extends its projections to 2030, forecasting an ongoing cycle of accumulation, markup, and distribution. These insights offer a glimpse into the market’s potential trajectory, providing valuable guidance for both investors and enthusiasts alike.
Projecting the Onset of Altcoin Season
According to EtherNasyonal’s Wyckoff cycle chart, the impending altcoin season is on the horizon, with altcoins already preparing for a remarkable parabolic ascent. Altcoin season is characterized by substantial price surges in cryptocurrencies, excluding Bitcoin, often leading them to outperform Bitcoin significantly. Reflecting on past bull markets, notable altcoins such as Ethereum, Cardano, and Solana spearheaded previous altcoin seasons.
The analyst predicts that the altcoin season will commence following the re-accumulation phase depicted in the Wyckoff market chart. This phase is slated for 2025, subsequent to the Markup phase in 2024.
During this re-accumulation phase, altcoins are expected to experience a meteoric rise, potentially heralding a robust and bullish altcoin season. The performance of Bitcoin is also poised to play a pivotal role in this anticipated altcoin season, as historical patterns indicate that Bitcoin bull runs have often preceded past altcoin seasons. Additionally, a decrease in Bitcoin’s dominance coupled with heightened demand for altcoins could signal the imminent arrival of altcoin season.
