The cryptocurrency market is showing bullish trends as long-term resistance levels are breached. Let's examine the key factors contributing to this growth.
Overview of the Market
This week, the cryptocurrency market shows positive changes. The total market capitalization (Total 1) is rising, evidenced by Ethereum reaching an all-time high. The total market cap excluding Bitcoin (Total 2) has also broken its long-term resistance levels.
Analysis of Current Trends
The common framework for determining the phases of a bullish market includes several important stages: the first phase ends when Total 1 breaks past resistance levels and continues to grow. Historically, this process took about 500 days in 2016, 300 days in 2021, and may take between 200 and 300 days in 2025.
Outlook and Strategy for Future Actions
It is important to note that the market capitalization of small and mid-cap assets has yet to break resistance levels, suggesting there is still time for these asset classes to grow. Since high-cap assets are expected to lead the growth, the strategy is to switch from large to small-cap assets once Total 3 breaks its limits.
Thus, the current state of the cryptocurrency market indicates the beginning of a new bullish cycle, with significant growth potential for small and mid-cap assets. Investors should closely monitor changes in market capitalizations.
