In the virtual asset industry, it is sometimes impossible to keep up with Bitcoin’s authority. The current market scenario where Bitcoin had pumped over 250 percent since the start of the year posed a tough competitor to beat. There was still hope for the rest of the altcoins as many analysts and crypto enthusiasts recently claimed that Bitcoin’s dominance in the collective market would decline after a while, which would provide a window of opportunity for the altcoins to prosper. However, that window of opportunity might not transpire for a while.
Recently, a lot was said about the process of chart analysis for crypto assets which indicate patterns and future trends in the financial market. A lot of the traders and investors pick up cues from pattern analysis in order to conduct profitable investments. It is also known that patterns in chart analysis often recur and these recurring trends are compared to past trends to derive possibilities in the market.
In a recent study, the price movement of Bitcoin during 2012-2015 was highlighted and it was observed that a pattern that depicted the price of Bitcoin in 2013 had materialized to act as a support when Bitcoin underwent accumulation in mid-2015. Major price corrections had surfaced and the price movement remained minor till the start of 2016.
In line with the same thought, the aforementioned chart of the altcoin market cap was drawn out in comparison. When carefully observed, it can be noticed that a similar pattern was forming in the current scenario, which had surfaced during the Bitcoin bull run of 2017. The same pattern of “Key consolidation which acted as support” recurs in the current alt-chart as well. Using the Bitcoin 2012-2015 chart as a point of reference, one can speculate that Altcoins would indicatively enter a large accumulation period. The analysis suggests that after the accumulation, the prices would surge massively from mid-2020.
However, Peter Brandt, an old-school trader, had claimed that it was not ideal to draw such conclusions for chart analysis. At press time, a majority of the altcoins were plummeting in valuation after witnessing minor growth over the week.