Altcoin

Crypto Analyst Says Altcoins Are About to Enter a Parabolic Curve, Here’s Why

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Expectations for the cryptocurrency sector are still high and altcoins, in particular, are expected to do well. A crypto analyst known as El Crypto Prof on X (formerly Twitter), shares this sentiment, expecting the altcoin market to undergo a parabolic rally.

Altcoins are destined to explode

In a post on X (formerly Twitter), the crypto analyst highlighted why altcoin market it was said to explode. The chart attached to the post showed previous bull cycles for the cryptocurrency market and why the current weak market performance was normal.

For example, in 2016, the cryptocurrency market went into accumulation mode after the Bitcoin halving, where altcoins stalled for a while before recovering. The same also happened in 2020, after the Bitcoin halving, with accumulation dominating the market for a few months before rebounding.

The same trend is repeating itself in 2024 after the Bitcoin halving it was completed a week ago. Looking at the chart, the crypto analyst highlights that this accumulation trend is occurring once again. But this is not the only thing that repeats itself.

After each accumulation period there was a retrospective test, and a positive confirmation above this point always was The altcoin rally has begun. The analyst points out that this backtest is already underway and altcoins could see a significant explosion from here.

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They further explain that if the trend continues as it did in 2016 and 2020, the altcoin market could see “glory months ahead.” This could easily see the total altcoin market the capitalization will have doubled compared to 2016 and 2020, and given the current market capitalization of approximately $1 trillion, it is expected to exceed $2 trillion. “Those who are bearish here obviously haven’t done their homework,” the analyst warned.

The cryptocurrency market is still bullish

Despite the price decline that rocked Bitcoin and altcoins in April, the market remains bullish. One indicator of this is that the Crypto fear and greed index continue to trend into greed territory, meaning investors are still willing to put money into the market.

Rekt Capital, another crypto analyst, also confirms Crypto Prof’s analysis. The analyst also took to X (formerly Twitter) to reveal that the Bitcoin price it is also in an accumulation phase, which it refers to as the “reaccumulation period”. However, the analyst believes many will miss the subsequent breakout, saying: “Months from now, no one will remember this reaccumulation period. But everyone will remember the Parabolic Phase that comes next.”

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Altcoins market cap at $1.016 trillion | Source: Crypto Total Market Cap Excluding BTC  on Tradingview.com

Featured image from Cointribune, chart from Tradingview.com



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