Bitcoin and Ethereum are currently consolidating, with altcoins like Solana and Dogecoin showing little upward movement. However, one analyst believes a massive altcoin rally is on the horizon.
A Cyclical Pattern
The analyst, known as Prometheus on X (formerly Twitter), points to a chart showing the total altcoin market capitalization relative to Bitcoin’s ($TOTAL3ESBTC). This chart reveals a pattern from previous market cycles:
- Bitcoin’s Price Discovery: During periods when Bitcoin makes significant price gains, it absorbs liquidity from the rest of the market. This is shown on the chart as purple shaded regions.
- The “Money Printer”: Following these periods of Bitcoin dominance, a sharp rebound in altcoins occurs. This is when capital flows back into altcoins, causing rapid price increases (shown in green on the chart).
- Current Situation: The chart currently shows a similar pattern to previous cycles – a dip below the cyclical low, suggesting a potential “money printer” phase is imminent.
Timing is Key
The analyst emphasizes that the altcoin rally won’t necessarily happen during Bitcoin’s price surge. Instead, it’s more likely to occur after Bitcoin experiences a slight pause or retracement. This cool-off period allows liquidity to shift from Bitcoin to altcoins, triggering the explosive, albeit short-lived, rally.
Profit Potential (and Pitfalls)
The analyst predicts massive profits for those holding altcoins, stating, “Everyone positioned in altcoins are about to make more money than they know what to do with.” However, they also caution that only a small percentage of traders will successfully capitalize on this.
At the time of writing: Bitcoin is trading around $104,730, and its market dominance is 64.0%, up 1.18% in the last 24 hours./p>
