Signal from Glassnode Founders for the Altcoin Market: A Massive 350% Bullish Wave on the Way!
Glassnode predicts that following the recent correction in the cryptocurrency market, the market value of altcoins will increase by 350%.
Co-founders Jan Happel and Yann Allemann suggest that following a sudden pullback, a significant uptrend could occur, potentially forming a structure similar to that of 2021 in terms of altcoin market value.
The co-founders utilize the Elliott Wave theory, which suggests that an asset tends to experience a five-wave rally, in their analysis.
“The crypto bull market continues. Other cryptocurrencies outside the top ten are also following this trend. There was a strong correction in early 2021. We believe this to be the fourth wave. Now, we are experiencing a similar strong decline. However, we expect to see more leading indicators of an upward wave. Our indices and Fibonacci levels suggest a possible ~350% increase from current levels for altcoins.”
The founders state that the latest catalyst for the crypto market is the weakening of the U.S. dollar index (DXY).
According to analysts, DXY likely peaked in an expanding diagonal formation earlier this month, implying that a significant downward movement could continue, potentially leading to a new bull market for Bitcoin (BTC).
The founders also touch upon the impact of spot Bitcoin exchange-traded funds (ETFs) on prices. They note that ETF investors have reacted to price declines, but there is no reason for this.
“The significant volume executed by ETFs could potentially affect short-term price movements and long-term strategic shifts in investment and trading behavior. However, so far, significant ETF outflows have often coincided with major price declines in the Bitcoin market, indicating a tendency for investors to react to current downturns.
This is crucial to understanding the causality of altcoin price movements and largely indicates a reactive investor behavior during market fluctuations.”
In the last 24 hours, Bitcoin has been trading slightly lower at $66,434.
