Altcoin Q1 Hype Cycle Around The Corner? - PART 3

Features analysis on the Altcoin Market Cap, Bitcoin's Pre Halving Rally phase, Altcoin Hype Cycles as well as ETH, LINK, SOL, VET, UNI, THETA, DOT, COTI, CHZ

Welcome back to the Rekt Capital Newsletter.

In today's edition, we'll discuss Bitcoin's Pre-Halving Rally, Altcoin Market breakout, the breakouts in Ethereum, Solana, and Chainlink how all of these moving parts align well with the Altcoin Hype Cycles.

We'll also cover the price action for a wide-variety of Altcoins, including:

  • VeChain (VET)
  • UniSwap (UNI)
  • Theta Token (THETA)
  • Polkadot (DOT)
  • Coti (COTI)
  • Chiliz (CHZ)

The Bitcoin "Pre-Halving Rally" Phase Has Begun

Last week, we spoke about how Bitcoin was transitioning away from its Pre-Halving Downside period into its new Pre-Halving Rally phase:

A few days later, Bitcoin had broken out:

The Pre-Halving Rally phase has begun, a little ahead of schedule even.

But this Bitcoin breakout has tremendous implications for the Altcoin Market at large as well, primarily because it is kickstarting a new Money Flow Cycle:

And we're already seeing the very initial signs of Altcoins starting to react to this new Pre-Halving Rally phase from Bitcoin.

Altcoin Market Cap

Over the past few weeks, we've been taking a look at Altcoin Market Cap and its Bullish Pennant:

And most recently, Altcoin Market Cap has performed a historic breakout from this structure:

Here's what this breakout means for Altcoin Market Cap:

  1. After a period of extended consolidation at highs, Altcoin Market Cap is ready for a new uptrend.
  2. The yellow circled retest was successful. Historically, yellow circled retests have preceded uptrends to revisit the blue level at $250bn which would set up another retest (blue circled retest).
  3. Altcoins are going to increase in valuations over the coming several weeks.

Ethereum's Price Predicament

A big part of the Altcoin Market Cap is represented by Ethereum, which we discussed last week, emphasising how it was preparing for its next move:

Here is today's update:

Ethereum has rallied +15% from the red Range Low ($2274) since last week and is on its way to revisiting the Range High at $2791 (red).

Generally, the fact that Altcoin Market Cap and Ethereum have broken out shows that Ethereum is following Bitcoin and with time - Altcoins will too.

The timing for this couldn't be better because Altcoins are in the very middle of their Q1 Hype Cycle:

Altcoins are in their Lowest Hype period (green), having experienced deep retracements since the peak of their previous wave in late 2023.

Now, Altcoins should be bottoming in preparation for their next wave up.

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