Altcoins Bull Cycle As XRP Wins SEC Lawsuit!

Altcoins ready for the bull market?

Written by: Michaël van de Poppe

Last week I've not been providing an update as I was visiting the GP in Silverstone, which was fun, but we've been focusing a lot on the case that we're having to anticipate a potential breakout upwards on the markets for altcoins and that this is actually the best period to start accumulating your positions in order to prepare yourself for the bull cycle.

Remember that I've discussed a case of the Bitcoin dominance most likely being topped out soon at the 200-Week MA and EMA and, additionally, ten months prior to the halving the altcoins usually start to bottom out.

Next to that, we've witnessed a case where the markets have been surging through a breakout above the 200-Week MA and EMA for Bitcoin and resting on support, so all of a sudden, the sentiment has switched from ultra negative towards positive as in the past weeks things have changed quickly. First of all, many institutional interest comes along, which means that we're getting a case of a potential Bitcoin ETF in the United States, while also XRP winning a lawsuit against the SEC. That gives some more freedom for the markets and I think we'll be getting into better shape for the coming months.

The 'Others' chart, which we've been discussing the past weeks as well, is providing a clear Wyckoff Cheat Sheet structure. Massive pain through the period of May 2022, as the valuations started to cascade downwards massively. Since then, some small relief took place, but also another low equalling the case of the Anger period, which we see reflected around the period that FTX collapsed in November 2022.

Since then, we've seen a period of sideways consolidation, through which we've established ourselves a new higher low (Remember; Depression doesn't require the markets to make a new lower low at all). and the ability to be close towards a potential breakout upwards with all the lower highs ready to be taken.

It seems a matter of time with the recent news before we'll start surging upwards and the question is, how far will we reach? Ultimately, $200-240 billion seems a lot, but isn't that far if you see the strength on the recent move of XRP taking place.

Total Crypto Market Capitalization


The Total market capitalization for Crypto is currently showing strength. I've been talking about this a lot in my recent updates, which provides a clear upwards structure. Even better, we've flipped the 200-Week MA and EMA for support and granted ourselves some more strength through that.

This means that we'll be eager for a new higher high to be established. Such a continuation could lead towards a rally to the 0.618-0.65 Fibonacci level, which we can see in this case at $1.75T and that would be called the period of 'Disbelief'.

Additionally, many projects have been delaying market updates due to the circumstances of the markets we've been anticipating in the past year. That will start to be activated in the coming months as well.

Bitcoin Dominance


The Bitcoin Dominance chart. A chart that looks like it's reaching itself towards a potential top. If we compare the chart to the cycle we've been witnessing in 2019, we can anticipate a case where we're also ten-twelve months prior of the Bitcoin halving, and most likely finding ourselves in a case that the sentiment surrounding altcoins is on the lowest level of the cycle. This is also reflected in the overall interest on the markets and the activity on social media.

That's fine, but that provides you with information of potential investment opportunities. If nobody looks at a specific asset class, that might be the right time to get interested.

Regarding the Bitcoin dominance chart, it seems more and more likely that we'll be reversing trend and reject ourselves from the 200-Week MA and EMA here. Additionally, the argument that we're 10-12 months prior to the Bitcoin halving could be reflected here too.

That means? Great period to accumulate your positions into altcoins.

Chainlink / USDT


If you are watching specific assets, I think Chainlink is a particular asset that's going to do well in the upcoming period. If XRP isn't classified as a security, then Ethereum is also not classified as one. This ultimately also means that the DeFi sector might not be classified as a security, or atleast the markets are expecting that to be the case.

In that regard, we could see more momentum coming from the DeFi sector, including Chainlink. Additionally, from a technical perspective, we've seen a case where we are currently sustaining above the range low of $6. As long as we sustain above there, we potentially pick up pace and get ourselves towards a target of $12-13.

Avalanche / USDT


Avalanche is currently getting some momentum as well. It did break beneath the lows, but just briefly and that cascade triggered a ton of liquidations. Ultimately, that means we've been taking all the liquidity on the long side and have more than enough strength to get ourselves going towards more upwards momentum to take the liquidity on the short side.

In that regard, we see the strength popping up here as Avalanche has been rallying towards $15 and even higher. I'm assuming we'll continue blasting upwards, and ultimately, take the liquidity at $21.50 at this point.

Finally, I'm expecting to get some retracements going. Where would I be looking for potential entry points on an asset like Avalanche? I'd be searching for the area at $14 in the most defensive way, but in the aggressive way I'd be searching for an entry point at $14.50.

Thanks for reading and I'll see you again next week!