Mr. Pal has shared charts to display the phase of crypto market dynamics and explain why it looks amazing for bulls.
Big move after big consolidation
Today, on Oct. 3, 2021, Mr. Pal shared the chart of net cryptocurrency market capitalization displayed on a logarithmic scale.
This is total market cap. It is likely ready to move from 2 standard deviation oversold vs trend to overbought. That looks to me that the entire space can 3x into year end and 6x into next year ( I think the cycle extends). pic.twitter.com/BwLayLvbj1— Raoul Pal (@RaoulGMI) October 2, 2021
According to this chart, crypto market cap touched the lower limit of the ascending channel and found a support. Thus, the bullish trend is confirmed, and crypto markets can spike 3-6x in the coming months.
The entire segment is almost ready to exit its "overbought" stage and enter an "oversold" period. That is why the economist expects a rapid upsurge in crypto capitalization in 2022.
At press time, the aggregated capitalization of the cryptocurrency segment is over $2.13 trillion, which is 16% lower than the all-time high registered on May 12, 2021, according to CoinMarketCap data.
Giant cup and handle
Also, Mr. Pal adds, he noticed a "cup and handle" technical analysis pattern on the chart that displays the aggregated capitalization of all cryptocurrencies, excluding Bitcoin (BTC) and Ethereum (ETH).
This chart turned bullish after crossing the $900 billion level, Mr. Pal says. Thus, all cryptocurrencies look "coiled" to him; even small caps are no exception.
As covered by U.Today previously, some on-chain indicators confirm that whales and long-term holders aggressively accumulated crypto during the last "dip."
Glassnode's Schultze-Kraft revealed that 80.5% of the available Bitcoin (BTC) supply is in strong hands as of late Q3, 2021.