Wyckoff Cycle Indicates Market Phase and Upcoming Altcoin Season Start
The crypto market may be approaching an anticipated altcoin season. As Bitcoin leads the current bull wave, a crypto analyst has utilized the Wyckoff Cycle to identify the market's current phase, suggesting that altcoins could soon experience a “parabolic run.”
Wyckoff Cycle Analysis
Technical analyst EtherNasyonal shared a chart of the crypto total market cap, excluding Bitcoin, illustrating the Wyckoff cycle, which consists of four phases: Accumulation, Mark Up, Distribution, and Mark Down.
The Accumulation phase is when investors buy at lower prices amid reduced selling pressure. Following this, the Mark Up phase begins, characterized by price increases driven by heightened demand.
The subsequent Distribution stage sees smart money selling off holdings, leading to potential price corrections. This is followed by the Markdown phase, where overwhelming selling pressure results in a downtrend.
Currently, the market is in the Mark Up phase, indicated by rising cryptocurrency prices. Projections for 2025, 2026, and 2027 suggest a re-accumulation phase, another Mark Up phase, and a Distribution phase, respectively. The chart anticipates further cycles from 2027 to 2030.
Timing of the Altcoin Season
According to EtherNasyonal’s analysis, the altcoin season is expected to start following the reaccumulation phase, projected for 2025 after the Mark Up phase in 2024. During this reaccumulation phase, altcoins are likely to rise significantly, potentially leading to a bullish altcoin season.
The performance of Bitcoin will influence this altcoin season, as historical trends show a Bitcoin bull run often precedes altcoin seasons. A decrease in Bitcoin dominance and rising demand for altcoins may signal the imminent arrival of the altcoin season.
Featured image from Pexels, chart from TradingView