Glassnode, the analytics platform, has made a bold prediction that the altcoin market cap will experience an impressive surge of 350% following the recent correction. The co-founders of Glassnode, Jan Happel and Yann Allemann, who go by the name Negentropic on the social media platform X, believe that the alt market cap is currently forming a structure similar to that of 2021, where a sudden retracement was followed by a massive bull run. Their analysis is based on the Elliott Wave theory, which suggests that assets often witness a five-wave rally.
According to Happel and Allemann, the crypto bull market is still ongoing, with other cryptocurrencies following suit, excluding the top ten cryptos. They point out that in early 2021, there was a strong correction that they believe was wave four. They now see a similar strong decline and expect more upside in the future. Based on their analysis of the index and Fibonacci levels, they anticipate a potential upside of approximately 350% from current levels.
The co-founders of Glassnode also highlight the weakening strength of the US dollar index (DYX) as another bullish catalyst for the crypto market. They suggest that the DXY likely reached a peak earlier this month in an expanding diagonal pattern, indicating an impending significant downward move. This downward move could potentially serve as a catalyst for a renewed bull market for Bitcoin (BTC).
In addition, Happel and Allemann discuss the impact of spot BTC exchange-traded funds (ETFs) on prices. They argue that ETF investors are reactive to price declines rather than causing them. However, they also acknowledge the significant volume handled by ETFs, which they believe has the potential to drive short-term price movements and long-term strategic shifts in investment and trading behaviors.
At the time of writing, Bitcoin is trading at $66,434, experiencing a slight decline in the past 24 hours.
Disclaimer: The opinions expressed in this article are not investment advice. Investors are advised to conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. It is important to note that transfers and trades are done at one’s own risk, and any losses incurred are the responsibility of the individual. This article does not recommend the buying or selling of any cryptocurrencies or digital assets and should not be considered as investment advice. The Daily Hodl is also not an investment advisor.
