A closely watched analyst says altcoins are likely to spark a new rally while Bitcoin (BTC) decides its next move.
Household trader Rekt Capital tells his 470,000 followers on social media platform
“Welcome to the Q2 Altcoin Hype Cycle.
Altcoin Bottoming Out process is underway.”
As of this writing, total altcoin market capitalization has increased to $294 billion, up from $76 billion in November 2022, during the worst bear market.
Looking at Bitcoin, Rekt Capital says BTC is potentially forming a bull flag on the monthly chart. As the name suggests, a bull flag is generally considered a bullish technical setup that hints at an upward impulse and implies a brief period of consolidation before the next advance.
“Imagine Bitcoin forming a monthly bull flag right now.”
However, those looking for a longer and stronger bull market may prefer to see BTC consolidate for longer before continuing its rise, according to traders. He says a clean break of $71,500 could indicate that BTC is on the verge of a shorter, faster uptrend.
“The expanded consolidation here will bring Bitcoin closer to resynchronizing with its historical halving cycle.
After all, the current acceleration of the cycle is still around 190 days (an improvement over the 260-day acceleration set in mid-March when BTC reached a new all-time high).
On the one hand, investors naturally want a breakout, but this would entail an acceleration cycle in which Bitcoin peaks sooner in a bull market.
On the other hand, extended consolidation here could help resynchronize with the historical halving cycle, leading to a longer Bull Run.
There are no right or wrong answers. In both cases, I am optimistic.
It’s a question of whether you’re going to get a shorter bull market or a longer bull market in general.
“History suggests we should generally be long, but Bitcoin is once again going against the grain of history, closing for the week above the highs of the $71,500 range.”
As of this writing, Bitcoin is trading at $70,221.
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