There is a lot of talk about a potential surge in the value of altcoins in the coming weeks. An analyst in the crypto community pointed out an inverse head-and-shoulder pattern, which typically indicates a shift from a bearish to a bullish market. If this pattern leads to a breakout in the next few weeks, it could cause the value of the altcoin market to triple.
Signs of the breakout
Based on a community member’s analysis, it’s suggested that we may be at the end of the right shoulder of a market pattern, indicating a potential breakout. While this pattern isn’t foolproof, it’s generally a reliable signal of upcoming market movements. The most common entry point is when the price breaks through a certain level, with a stop placed above or below the right shoulder, corresponding to the market top and bottom, respectively.
According to this pattern, the profit target is determined by the difference between the low and high points, with the breakout price added or subtracted (market bottom or market top). This system provides a logical approach to market trading based on price movements.
Rekt Capital, another popular self-acclaimed crypto analyst, recently shared that the altcoin market cap is on track to achieve its highest weekly close since early April this year, as per a market cap projection he initially outlined in February 2024.
As of the latest update, the altcoin market cap stands at $1.16 trillion (excluding Bitcoin), while the total cryptocurrency market cap amounts to $2.51 trillion.
What is spurring hope for altcoins?
Bitcoin’s diminishing dominance and increasing market capitalization are fueling optimism for alternative coins, which encompass all cryptocurrency tokens apart from Bitcoin, such as Ethereum (ETH), Solana (SOL), and Polygon (MATIC). The market capitalization has recently surged, with Ether approaching a significant resistance level after gaining 27% in value over the past week.
Both cryptocurrency analysts and traders are closely watching alternative coins. Historical trends show that Bitcoin tends to make the first move, followed by Ethereum, and then the rest of the alternative coins, as capital flows from the highest-cap to the lowest-cap cryptocurrencies.
According to the founder of MN Capital, there was a 25% market correction recently, leading to an average 50% to 70% correction for alternative coins and the altcoin market. He predicts that the total market capitalization will soar to an impressive $15 trillion.
