Crypto analyst Mags, who goes by the handle @thescalpingpro on X (formerly Twitter), has predicted upcoming rallies for altcoins and Bitcoin. Contrary to the views of perennial bears, Mags believes the recent altcoin pullback signals a period of reaccumulation in preparation for another upward movement.
#Altcoins
Perma bears will tell you altcoins are done and are in a distribution phase. But if you look at the chart, altcoins are only up 58% since they broke out after 525 days of accumulation.
Do you really think a breakout after 525 days of consolidation will end after… pic.twitter.com/20WY9HGLix
— Mags (@thescalpingpro) July 25, 2024
Mags explained his position using the altcoin market cap chart, which shows that this category of cryptocurrencies is only up 58% since breaking out after 525 days of accumulation. He argues that it would be unusual for such a lengthy accumulation period to end with only a 58% rally, and therefore believes the altcoin market retains significant upside potential in the current bull cycle.
TradingView data supports this view, showing a developing upside reversal in the altcoin market cap. The metric has bounced off the 0.382 Fibonacci retracement level and is attempting to break above the next resistance at the 0.5 Fibonacci retracement level. A close above this level could confirm the end of the pullback and pave the way for an altcoin market rally.
Total2 Daily Chart on TradingView
Meanwhile, Mags has identified a new Hash Ribbon indicator for Bitcoin at the current price level. In a separate X post, he noted that this is the third time the flagship cryptocurrency has printed this bullish indicator since bottoming out at $15,500.
According to Mags, Bitcoin has experienced a “nice jump in price” each time the Hash Ribbon indicator has appeared since the beginning of the current bull run. He suggests that the recent signal indicates the early stages of another leg in Bitcoin’s upward trajectory after recovering from a recent pullback.
Bitcoin recently bounced off support at $63,424 following a 7.35% pullback over the past four days. According to TradingView data, the cryptocurrency was trading at $67,096 at the time of writing.
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