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Recently, altcoin prices have dropped by 30% to 70%, making many investors rethink their holdings. However, the outlook for altcoins might not be as grim as it seems. According to well-known crypto analyst Moustache, altcoins are currently following a promising Wyckoff accumulation pattern, which could signal a potential rise.

Many investors are keenly watching for what comes next.

Wyckoff Pattern Suggests a Rally Ahead

Moustache points out that altcoins have been following the Wyckoff accumulation pattern for several years. This pattern is known for predicting market movements and usually indicates a market bottom followed by a strong rally. He believes that the current consolidation phase might soon lead to a significant upward movement for altcoins.

Moustache also highlights a large descending broadening wedge forming. This pattern often signals a period of accumulation before a bullish breakout. He advises investors to focus on the long-term trends rather than short-term price changes.

Bitcoin & Altcoins: Understanding the Relation

Bitcoin’s dominance is a key factor that influences the rise of altcoins. For altcoins to have their moment, Bitcoin’s dominance needs to drop.

Looking at the weekly chart, Bitcoin’s dominance (BTC.D) fell from 62.69% in March 2021 to 40.89% by May. This period coincided with many altcoins reaching their all-time highs during the last bull market.

What’s Needed for Altcoin Success?

To replicate 2021’s performance, at least 75% of the top 50 altcoins need to outperform Bitcoin. Currently, data from Blockchaincenter shows that only 22 cryptocurrencies, including XRP, TRX, XMR, HNT, and AAVE, have managed to achieve this.

Also Check Out: Crypto Whales Are Stacking These Coins During the Dip! 

The future of altcoins is now. Are you ready?

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