#MarketCorrectionBuyOrHODL What do you think about this Altcoin cycle?
Let me analyze this for you, especially while the market is making you anxious.
Detailed analysis of specific milestones in the chart:
Based on the chart, we can analyze the key milestones of the Altcoins Liquidity Index through each cycle phase:
1. Period 2018 – 2020:
• First bottom:
• Altcoins liquidity dropped sharply at the end of 2018, following a significant market downturn (crypto winter).
• Bull Run begins: After 214 days from the bottom, Altcoins entered a strong growth cycle from late 2019 to 2020, coinciding with Bitcoin's recovery and the start of the halving cycle (May 2020).
• Altcoins performance:
• Some top Altcoins like Ethereum (ETH) surged from below $100 (December 2018) to over $400 by mid-2020.
2. Period 2020 – 2022:
• Second bottom:
• After the growth surge in 2020, the market entered a strong correction phase at the end of 2021 and early 2022, due to profit-taking pressure and macroeconomic impacts (inflation, rising interest rates).
• Next Bull Run:
• The next growth cycle begins 214 days after the bottom, leading to the largest price increase in Altcoins history (2021).
• Ethereum reached an ATH (all-time high) of $4,800 in November 2021. Other Altcoins like Solana (SOL) and Binance Coin (BNB) also recorded hundreds of percent growth.
3. Period 2022 – 2024:
• Current bottom:
• Altcoins Liquidity Index dropped sharply since late 2022, after a prolonged market correction due to events like the collapse of FTX and high interest rates.
• Accumulation phase
• Currently (end of 2024), the chart shows the market is in an accumulation phase, with two indicators (red and green) gradually converging.
• Prediction:
• If history repeats itself, the next Bull Run cycle will start approximately 214 days after the bottom (mid-2024), with strong growth at the end of 2024 – beginning of 2025.
4. Forecast for 2025:
• Major Bull Run:
• The chart forecasts the Altcoins liquidity index will peak in 2025, with strong growth.
• This could be a time of significant capital inflows into Altcoins after Bitcoin peaks in its growth cycle.
Realistic insights from historical milestones:
• Altcoins market cycle:
• Altcoins often peak after Bitcoin completes its bullish cycle, as capital flows from Bitcoin to riskier assets like Altcoins.
• For example:
• In 2021, after Bitcoin reached $69,000 (November 2021), Altcoins continued to grow strongly until the end of the year.
• Current (end of 2024):
• The chart shows the market is in an accumulation phase, similar to previous cycles. If the pattern repeats, this is a good time to prepare for a significant growth cycle of Altcoins in 2025.
In summary:
The chart clearly indicates the relationship between the phases of bottoming, accumulation, and growth of the Altcoins market. With the 214-day cycle highlighted, if this pattern holds true, the late 2024 to 2025 period will be a significant opportunity to capitalize.