Altcoin Season is Near, the Wyckhoff Analysis Suggests
In this post, I detail the Events and Phases during Wyckhoff Accumulation which is relevant for the current state of the Cryptocurrency Market. Using the Wyckhoff Methode Analysis I also provide an argument why I believe the next Altcoin Season (Altseason) is around the corner.
What is Altseason?
Altcoin Season (or Altseason) is a brief period when the capital flows out from Bitcoin into Altcoins, resulting in a significant and rapid price increase and market capitalisation of majority of cryptocurrencies.
There are four charts that allow one to track the changes in the capitalization of the cryptocurrency market: Crypto Total Market Cap (TOTAL) Chart, Crypto Total Market Cap Exclude BTC (TOTAL2) Chart, Crypto Total Market Cap Exclude BTC and ETH (TOTAL3) Chart, Crypto Total Market Cap Others (OTHERS) Chart.
What is Wyckhoff Price Cycle?
According to Richard Wyckoff, the financial market can be interpreted through analysis of supply and demand.
His theory outlines key elements in price trend development marked by accumulation and distribution periods.
There are four distinct phases comprise the cycle: accumulation, markup, distribution, and markdown.
Wyckhoff Accumulation Scenarios
To translate Wyckoff method to the current cryptocurrency market conditions, irst, I focus on specific Events and Phases that are common for and occurring as part of most of the Wyckhoff Accumulations.
I also discuss distinctive scenarios for the Accumulation according to Wyckhoff.
Analysis Conclusions
By applying the Wyckhoff method to Cryptocurrencies, it becomes apparent that Cryptocurrency market is in the Phase D of the Wyckhoff Accumulation Price Cycle.
Different tiers of Altcoins are at different events in Phase D.
While low market cap Altcoins completed SOS event and working on BU/LPS, Top 10 Altcoins (according to market cap) still have to break-out from the TR showing SOS and printing BU/LPS.
This lag is very normal for the Cryptocurrency market.
As we know, despite of the fact that the Cryptocurrency market moves simultaneously, historically, there was a lag in the bullish moves between Bitcoin and different tiers of Altcoins.
However, what is obvious from the above analysis, once Phase D is completed, which will happen rather soon, all cryptocurrencies will move into Phase E where bulls will be in control and supply will be scarce.
This is where we will see the next Altcoin Season for the Cryptocurrency market.
Read the full article The Wyckhoff Method Indicates Altcoin Season is Around the Corner.
