The founders of analytics platform Glassnode say that altcoins are setting up to explode in a blow-off top market crescendo.
Glassnode co-founders Jan Happel and Yann Allemann, who share the Negentropic handle on the social media platform X, say that the Ethereum versus Bitcoin (ETH/BTC) ratio is a bellwether for altcoins.
The analysts say that after a long consolidation phase, ETH/BTC has finally broken higher which suggests that altcoins are about to soar.
“‘The Ratio which drives Altcoins Bull Market’
ETH/BTC ratio is a gauge on the crypto market. Higher ratio – the more risk-on in crypto (altcoins).
When ETH/BTC rallies, altcoins rally.
And we have just broken higher after a long consolidation since late 2021.
Altcoins will soar.
All points to a blow-off top as suggested by Henrik Zeberg.”
Henrik Zeberg, the economist mentioned by the Glassnode founders, previously proposed that Bitcoin and crypto are entering into a blow-off top-style rally with the bull market coming to an explosive and sudden end rather than a longer multi-year cycle.
Happel and Allemann are also looking at the Bitcoin versus S&P 500 (SPX) ratio which they say is a key indicator of bull and bear markets for risk assets like BTC.
They say that a bullish trend is intact for BTC/SPX, suggesting that markets are in a strong risk-on climate which bodes well for digital assets.
“Since our BTC/SPX ratio triggered a BULL MARKET SIGNAL, BTC is up 120% and SPX is up 28%!
BTC/SPX ratio is a strong indicator of BEAR vs. BULL market.
At this moment the ratio is strengthening. It flashed in February 2023 – and hence it has been prudent to be LONG RISK ASSETS ever since.
Nothing suggests that anything has changed in relation to this.
RISK-ON!!”
Generated Image: Midjourney