As Bitcoin maintained a sideways pattern, weekend business was flat. The great majority of cryptocurrencies also adopted the star crypto in the meantime, maintaining a consolidation trend with reduced chances of changing the current pattern. The tremendous positive signs that the cryptocurrencies flash, however, highlight the significant risk of a bullish breakout occurring very rapidly, suggesting that the current pattern may not last for very long.
Since it reached its peak during the 2021 bull market, the altcoin market cap has been consolidated inside a falling wedge for more than a year. Despite the bulls’ attempts to reverse the pattern, the descending pattern saw an extreme decline as a result. After following the planned course, the market cap came upon a key area with increased chances of a positive breakout.
Without taking Bitcoin into account, the entire market capitalization is making arduous attempts to form a bullish wave that would surpass the crucial upper barrier. The pattern has faced bearish momentum in the meantime, which will swiftly subside. The chance of a bullish breakthrough hover over the cryptocurrency market due to the altcoin market cap’s purchasing and selling above the 21-day weekly EMA and 200-day weekly MA levels.
The pair created a double backside sample throughout the previous cycle, which was followed by an impulsive bullish wave. A mid-cycle corrective and the second impulse bullish wave were also seen throughout the rally. The current cycle appears to be nearing the end of the mid-cycle correction and has currently satisfied the first three criteria. The second impulse wave may also be approaching since the pattern is at the base of an explosion.
