Altcoin Market Cap Set for 350% Surge as Technical Setup Forms: Glassnode Founders
The creators of Glassnode, a renowned analytics platform, are anticipating a significant surge of 350% in the altcoin market cap following the recent market correction. Glassnode’s co-founders, Jan Happel and Yann Allemann, known as Negentropic, suggest that the alt market cap may be mirroring the structure seen in 2021, where a sudden retracement was followed by a massive bull run. Their analysis is based on the Elliott Wave theory, which indicates that assets often experience a five-wave rally.
According to Happel and Allemann, the crypto bull market is still ongoing, with “others” following cryptocurrencies outside the top ten. They note that a strong correction earlier this year, identified as a wave four, is now followed by a similar decline. The duo believes that there is more upside potential and predicts around a 350% increase from current levels based on their Fibonacci levels and index analysis.
The Glassnode founders also recently highlighted the weakening strength of the US dollar index (DXY) as a bullish catalyst for the crypto market. They argue that the DXY likely reached a peak in an expanding diagonal pattern, suggesting a significant downward move is underway. This could potentially trigger a renewed bullish trend for Bitcoin.
Furthermore, Happel and Allemann offer their perspective on the influence of spot BTC exchange-traded funds (ETFs) on prices. They believe that ETF investors react to price declines rather than causing them. However, they acknowledge that ETFs have the potential to impact short-term price movements and long-term investment and trading behaviors, given their significant trading volume.
Currently, Bitcoin is trading at $66,434, experiencing a slight decline over the past 24 hours.
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