Altcoin Market Cap Breaks Out of “Wyckoff Accumulation Phase”: Will Ethereum, XRP Fly?

In a post about Observe Altcoin market cap broke during Wyckoff accumulation phase. Due to this upward trend, traders expect altcoin prices to rise higher.

This refreshing breakout coincides with Bitcoin (BTC)’s outstanding performance on February 28th. At spot rates, the coin is currently trading above the supported psychological round number of $60,000 and is approaching $70,000.

Altcoin Breakout Due to Accumulation

The “Wyckoff Accumulation Pattern” is a concept developed by technical analysts to select potential buying opportunities, in this case altcoins. It is widely known that whenever prices are at this stage, the so-called “smart money” or large institutional players are accumulating at lower prices.

Prices are currently consolidating in a tight range and on low volume. The signal that this build-up is over is a sharp breakout where the price rises above a defined range. Often these uptrends are caused by increasing trading volume.

Looking at the chart, altcoin market capitalization has surpassed the accumulation stage. Due to previous resistance and support, altcoin market caps are likely to continue to rise. Therefore, top altcoins including Ethereum (ETH), Solana (SOL), and XRP will also follow suit and hit 2024 highs.

Why Spot Bitcoin ETFs Are Giving BTC an Edge in This Bull Market

So far, Bitcoin is leading the way, hitting over $10,000 in less than a week. However, when a coin is trading above $60,000, the demand side drivers are completely different from those affecting altcoins. The U.S. Securities and Exchange Commission’s (SEC) approval of a spot Bitcoin exchange-traded fund (ETF) has brought billions of dollars into the world’s first cryptocurrency.

So while altcoins have historically outperformed BTC when cryptocurrency prices rise, spot Bitcoin ETFs have the edge. Therefore, this upward trend may differ from 2017 and 2021. This prediction is because institutions are likely to prefer regulated assets over altcoins with undefined status.

As of late February 2024, the US SEC has not approved a spot ETF for any altcoin, including Ethereum. The agency also labeled several top altcoins, including Cardano (ADA), as unregistered securities. The agency has even filed lawsuits against major exchanges such as Binance and Coinbase, accusing them of facilitating trading in what the commission calls “unregistered securities.”

It was not immediately clear whether the US SEC would change its preview of major altcoins, particularly Ethereum (ETH), which has a market worth over $400 billion. Wall Street heavyweights like BlackRock and Fidelity remain interested in launching a spot Ethereum ETF.

Featured image by DALLE, chart by TradingView

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