Altcoin Chart Indicates End of Accumulation Phase
In 2023, Bitcoin experienced a recovery thanks to institutional demand and the spot BTC ETF narrative. Some cryptocurrencies like Solana also performed well during this time. Now, it seems that the rest of the crypto market might join in on the rally.
The TOTAL3 chart on TradingView shows similarities with a “Wyckoff accumulation schematic.” This schematic represents the bottoming phase of a market cycle according to the Wyckoff Method. Once this accumulation phase ends, the market enters the “mark up” phase where prices rise significantly.
Understanding the Wyckoff Method and What Comes Next
The Wyckoff Method was developed by Richard Wyckoff in the early 1900s and is still relevant today, even in cryptocurrencies. According to Wyckoff, the market is controlled by a group of large players known as “The Composite Man.” These players suppress prices during lows to accumulate assets at lower prices.
Once these players have accumulated enough, they drive up prices during the mark up phase. Altcoins closely resemble the Wyckoff accumulation schematic, suggesting that the mark up phase could begin soon. If this holds true, there may not be much time left to buy altcoins at low prices.
If you miss out on this opportunity, don’t worry. The Wyckoff Method also suggests that after mark up comes “distribution” and then “mark down.” Distribution involves keeping prices above resistance to sell at higher prices, while mark down is a downtrend that follows when demand is exhausted. Eventually, accumulation begins again.
The chart mentioned in this article can be found in issue #33 of CoinChartist VIP. Read more about it here.
Hot Take: Time to Act as Accumulation Phase Nears its End
The current altcoin chart indicates that the accumulation phase in the cryptocurrency market is coming to a close. If you’re interested in buying altcoins at low prices, now might be the time to act. The Wyckoff Method has historically been accurate in predicting market cycles, and its resemblance to the current altcoin market suggests that the mark up phase could begin soon. However, it’s important to note that after mark up comes distribution and mark down, so this opportunity may not last forever. Keep an eye on the altcoin market and consider taking advantage of this potential turning point.
By
By
By
By