Altcoin Market Cap Break From “Wyckoff Accumulation Phase”: Will Ethereum, XRP Fly?
28 Fevereiro 2024 - 7:00PM
NEWSBTC
In a post on X, one analyst observes that the altcoin market
capitalization has broken from the Wyckoff accumulation phase. With
this upswing, the trader expects altcoin prices to move higher.
This refreshing breakout coincides with Bitcoin’s (BTC) stellar
performance when writing on February 28. At spot rates, the coin is
trading above $60,000, a psychological round number- now supported-
and is closely approaching $70,000. The Altcoin Breakout From
Accumulation The “Wyckoff accumulation pattern” is a concept
developed by technical analysts to pick out potential buying
opportunities, in this case, altcoins. Whenever prices are in this
phase, it is widely believed that the so-called “smart money” or
large institutional players are accumulating at low prices.
Currently, prices consolidate at tight ranges and with low trading
volumes. A signal marking the end of this accumulation is a sharp
breakout, lifting prices above the defined range. Often, this
upswing is with rising trading volume. Related Reading:
Ethereum Price Primed To Hit $3.5K After Bitcoin Rallies Past $60K
Looking at the chart, the altcoin market cap has broken above the
accumulation phase. With previous resistance and support, the
altcoin market cap will likely continue floating higher. As such,
top altcoins, including Ethereum (ETH), Solana (SOL), and XRP, will
follow suit, posting fresh 2024 highs. Why Spot Bitcoin ETFs
Give BTC Edge In This Bull Run So far, Bitcoin is leading the way,
posting over $10,000 in less than a week. However, with the coin
trading above $60,000, its demand-side drivers differ entirely from
what’s influencing altcoins. The approval of spot Bitcoin
exchange-traded funds (ETFs) by the United States Securities and
Exchange Commission (SEC) has seen billions of dollars flow to the
world’s first cryptocurrency. Therefore, while altcoins have
historically outperformed BTC when crypto prices rally, there is an
edge with spot Bitcoin ETFs. As such, this bull run will likely
differ from 2017 and 2021. This forecast is because institutions
will likely favor a regulated asset over altcoins whose status
remains undefined. As of late February 2024, the United
States SEC has not approved spot ETFs of any altcoin, including
that of Ethereum. Additionally, the agency has labeled several top
altcoins, including Cardano (ADA), unregistered securities. The
agency even filed lawsuits against major exchanges like Binance and
Coinbase, accusing them of facilitating the trading of what the
commission described as “unregistered securities.” Related Reading:
CEO Of German VC Firm Predicts XRP To Become ‘World Reserve Bridge
Currency’ It is not immediately clear whether the United States SEC
will change their preview of leading altcoins, especially Ethereum
(ETH), which has a market of over $400 billion. Wall Street
heavyweights like BlackRock and Fidelity remain interested in
launching spot Ethereum ETFs. Feature image from DALLE, chart
from TradingView
Bitcoin (COIN:BTCUSD)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Bitcoin (COIN:BTCUSD)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024