- Analyst highlights a specific pattern that the altcoin market has been traversing.
- Whale activity or BTC ETF rejection could mar the analyst’s prediction of an uptrend.
- Altcoin market cap is at the latter stages of forming the Wyckoff pattern, an uptrend could be oncoming.
Crypto Analyst Moustache tweeted that the altcoins market cap was following a pattern of breaking out from the descending triangle and retesting the all-time high of the previous year. Once, the previous high was reached, the altcoins had an uptrend. Currently, as shown in the chart below, it is the pre-surge season and the analyst stated that those who listened to him would be rewarded.
Meanwhile, CoinEdition reported about a whale activity, among the many others, where 1,750 BTC were accumulated on the verge of BTC ETF being approved. It’s not clear why the whale accumulated—there could be a possible pump and dump oncoming. The SEC warned the community of Fear of Missing Out (FOMO), and this whale activity could be one that could drive FOMO in the people.
If it’s not a pump and dump from a whale the FOMO warning from the SEC may be hinting that it would not approve the BTC ETF in the upcoming days. If that is the case, then, the question is, in light of all these possible events, will the analyst’s prediction of a surge be justifiable?
If BTC crashes, the altcoins market cap which is measured in BTC could also fall and this might disrupt the analyst’s call, had he not apportioned the margin for the occurrence of the above-mentioned events.
Altcoin Market Cap in Dollar (USD) (Source: Tradingview)
The above chart shows that the altcoin market cap has taken the Wyckoff pattern and it is currently at the last stage of completing this pattern. If the BTC ETF is approved by the SEC, then this would be reflected in the altcoin market cap with a surge. But if it’s rejected, that too would be reciprocated in the altcoin market cap. Additionally, the whales could make a dump in positive market conditions, then, it would liquidate many positions.
Although the magnitude to which the altcoin market cap would fall depends on the size of the dump, the immediate support for the altcoin market cap lies at $698B. But it would be interesting to see to what extent whale activity could affect a bullish market with BTC halving around the corner.
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