Glassnode, the analytics platform, has made a bold prediction that the altcoin market cap will experience a remarkable surge of 350% following the recent correction. The co-founders of Glassnode, Jan Happel and Yann Allemann, who go by the name Negentropic on the social media platform X, have compared the current structure of the altcoin market to that of 2021, where a sudden retracement was followed by a massive bull run.

In their analysis, Happel and Allemann employ the Elliott Wave theory, which suggests that assets tend to undergo a five-wave rally. They confidently state, “The crypto bull market continues. ‘Others’ follow crypto excluding the largest ten cryptos. Observe that we in early 2021 had a strong correction. We believe that was a wave four. We now have a similar strong decline. More upside is coming. This index and our Fibonacci levels give us reason to believe we may see approximately 350% upside from current levels.”

Furthermore, the Glassnode founders draw attention to another bullish catalyst for the crypto market, which is the weakening strength of the US dollar index (DYX). They assert that the DXY likely reached its peak earlier this month in an expanding diagonal pattern, indicating an impending significant downward movement. This, in turn, could act as a catalyst for a resurgent bull market for Bitcoin (BTC).

Happel and Allemann also provide their insights on the price impacts of spot BTC exchange-traded funds (ETFs). They argue that ETF investors react to price declines rather than causing them. They do, however, acknowledge the potential of ETFs to influence both short-term price movements and long-term strategic shifts in investment and trading behaviors. They state, “So far, however, significant ETF outflows often align with notable price drops in the Bitcoin market, indicating that investors tend to react to existing downturns rather than causing them. This suggests a predominantly reactive investor behavior in times of market volatility, which is crucial for understanding the causality of price movements.”

At the time of writing, Bitcoin is trading at $66,434, experiencing a slight decrease in the last 24 hours.

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