The cryptocurrency market operates on distinct structural patterns, driven by the actions of major market participants. These entities influence liquidity accumulation, establish trends, and direct the overall market direction. Understanding these mechanisms can provide clarity on market movements and potential future scenarios.

Market Structure Design

A repeating cycle can be identified, often following this sequence:

  1. Extended consolidation (6–8 months):
    During this phase, the market remains range-bound, accumulating liquidity as traders and investors build positions. This consolidation lays the groundwork for the next trend.

  2. The first growth wave:
    Following the accumulation phase, a significant upward move occurs, often attracting initial momentum and establishing a bullish trend.

  3. Redistribution and Liquidity Gathering:
    As prices rise, liquidity is drawn from stop points placed above resistance and below support areas. This phase recalibrates the market, setting the stage for the next growth surge.

  4. The second growth wave:
    Historically, markets rarely end their upward trajectory after a single growth wave. The second wave, often larger, will push prices higher.

  5. Another consolidation phase:
    After reaching new highs, the market tends to enter another prolonged consolidation phase, potentially forming upward structures like wedges.

This pattern often repeats, structurally and temporally aligning with past market behavior.

Goals for this cycle

The primary target for the current cycle is $140,000, a milestone yet to be achieved. With the trend following established market patterns, there is a high likelihood of another growth surge leading to this level. Additionally, a scenario involving a six-month consolidation phase until the end of summer may occur, potentially forming a gradual wedge and pushing prices up to $173,000.

Distribution phase and retail participation

As prices reach higher levels, the distribution phase begins. Major market participants, known as 'whales', strategically exit their positions, selling to retail investors amid heightened market hype. This process takes time and is often accompanied by an increase in altcoin prices as retail investor interest shifts to alternative cryptocurrencies. Such a scenario creates 'the greatest market hype', encouraging broad participation.

The Role of Altcoins

Altcoins play an important role during the distribution phase. When large players withdraw, funds often rotate into smaller assets with high potential. This creates a scenario where altcoins experience exponential increases, attracting significant attention and further driving liquidity into the market.

Looking Ahead

While the path to $140,000 and beyond seems plausible, caution is essential. Market volatility is complex, influenced by macroeconomic factors, regulatory developments, and unforeseen events. Continuous observation and due diligence (DYOR) are crucial for effectively navigating these cycles.

Conclusion

The cryptocurrency market operates on a defined structural rhythm, characterized by accumulation, growth, redistribution, and consolidation phases. As the cycle progresses, the potential for another growth wave remains high, with targets of $140,000 and even $173,000 within reach. However, this journey is likely to involve significant volatility and strategic moves from major market participants. Always stay informed, observe patterns, and conduct your research.

DYOR! #Write2Win #Write&Earn $BTC