The cryptocurrency market has been going through an accumulation phase, but a recent price chart of the total market cap excluding Bitcoin and Ethereum suggests that this phase may be coming to an end. This could mean that the opportunity to buy altcoins at cheap prices is almost over.
Bitcoin has been able to stabilize in 2023 after a rough bear market, primarily due to institutional demand and the narrative surrounding the spot BTC ETF. Other assets like Solana have also performed well despite the overall suppressed prices in the market. The TOTAL3 chart on TradingView indicates that the rest of the crypto market could soon join in on the rally, showing similarities to a Wyckoff accumulation schematic.
The Wyckoff Method, developed by Richard Wyckoff in the early 1900s, identifies different phases in a market cycle. These phases, which include accumulation and mark up, are believed to be controlled by a group of large players known as “The Composite Man.” These players aim to keep prices low during the accumulation phase so they can accumulate assets at the lowest possible prices before driving prices higher during the mark up phase.
The current altcoin market closely resembles the Wyckoff accumulation schematic, indicating that the mark up phase could be on the horizon. If this pattern holds true, there may not be much time left to buy altcoins at such discounted prices. However, the Wyckoff Method also suggests that after mark up comes distribution and mark down, signaling a potential downtrend in the future.
The chart discussed in this article was originally featured in issue #33 of CoinChartist VIP. For more information, you can read the full issue on their website. Overall, the market is showing signs of potential aggressive accumulation, indicating that the time to buy cheap altcoins may be running out. It’s important to stay informed and monitor market trends closely to make informed investment decisions in the cryptocurrency space.
