A chart analysis shows that the altcoin market has gone through two major cycles, each following a similar pattern of 5 upward waves (1-2-3-4-5) and 3 downward corrective waves (A-B-C).
Let’s dive into how the current market cycle compares to previous ones and what the future might hold for altcoins. Key observations from past and current cycles
1. Cycle LengthThe current cycle, which started around 2017, appears to be longer than the previous one. This could be because cryptocurrencies have matured considerably and gained global adoption.
With increasing public awareness and more players in the market, cycles now take longer to unfold.
2. Increased VolatilityThis current cycle has seen larger price fluctuations, especially during the wave
3. A major reason could be the involvement of institutional investors and larger funds entering the crypto space, bringing huge inflows and outflows of capital.
4. Corrections complexes
The second wave of this cycle was more complicated than the second wave of the previous cycle. This could be due to global economic factors such as the pandemic, changes in government policies, and economic uncertainty, which have deeply influenced the cryptocurrency market.
What does the future hold?
Based on the pattern of past cycles, here's what could come next for the altcoin market:
1. Peak of Wave 5 ApproachingAltcoins are currently in the final stages of the fifth and final upward wave of this cycle. Historically, this is when prices peak before a correction begins.
This means that altcoins could still see a strong rally before the end of the cycle, with potential gains exceeding 180% for some.
2. Major Correction LikelyAfter wave 5 is completed, the market is expected to enter a bearish phase, marked by three corrective waves (A-B-C).
These corrections are often deep and long, mirroring what happened in previous cycles. This phase could lead to a sharp decline in prices as the market cools.
3. Upcoming Buying OpportunitiesWhile the correction may seem alarming, it is also an opportunity for long-term investors. Once prices drop, the market will create excellent opportunities to accumulate altcoins at lower prices, setting the stage for the next cycle.
A quick comparison with historyThe crypto market is evolving, and while past cycles provide clues, no two cycles are exactly the same. The length, complexity, and volatility of each cycle depend on market conditions and world events.
However, the overall wave structure remains a reliable framework for analyzing trends.
Feel free to share which altcoins you hold, and we will analyze their potential performance in this cycle for you.
Don't miss the opportunity to prepare yourself for what's coming to the market!