Glassnode After the last correction in the cryptocurrency market altcoin It predicts that the market value will increase by 350%.
Co-founders Jan Happel and Yann Allemann state that the altcoin market value may form a similar structure as in 2021, with a major uptrend following a sudden pullback.
As we reported as Koinfinans.com, the co-founders in their analysis draw on the Elliott Wave theory, which states that an asset tends to witness a five-wave rally.
“The crypto bull market continues. Other than the top ten cryptos cryptocurrencyare also following this trend. There was a strong correction in early 2021. We believe this is the fourth wave. We are now experiencing a similar strong decline. However, we expect it to be a precursor to more upward waves. Our indices and Fibonacci levels show that a ~350% upside from current levels is possible for altcoins.”
The founders state that the latest bullish catalyst for the crypto market is the weakening of the US dollar index (DXY).
According to analysts, DXY likely made a top in an expanding diagonal formation earlier this month, implying that a significant downside move could be in progress that could lead to a renewed bull market for Bitcoin (BTC).
The founders also touch on the price impact of spot BTC exchange-traded funds (ETFs). They note that ETF investors react to price declines, but there is no reason for this.
“The large volume traded by ETFs can potentially impact short-term price movements and long-term strategic shifts in investment and trading behavior. But so far, significant ETF outflows have generally Bitcoin It has coincided with significant price declines in the market, indicating that investors tend to react to current declines.
“This is very important for understanding the causality of altcoin price movements and points to a predominantly reactive investor behavior during market fluctuations.”
Over the last 24 hours, Bitcoin is trading at $66,434, with a slight decrease.
