Technical Analysis: Double Zig-Zag Correction and Expectations of Momentum in the Crypto Market (Excluding the Top 10 Cryptos)

In the last 12 hours, the cryptocurrency market, excluding the top 10 coins, has shown a clear correction in a double zig-zag (WXY) pattern. This technical formation indicates that the market is undergoing a correction, but with the possibility of continuing the uptrend, if a new impulse leg is triggered.

A relevant factor that increases the probability of this positive reversal is the price having accurately touched the Block of Orders and the POC (Point of Control). These zones are extremely important in volume analysis, as they reflect areas of greatest buying and selling activity. The POC, specifically, indicates the price level where the highest volume of transactions occurred, which suggests a key point for the continuation or reversal of the movement.

Market Forecast: Growth Potential

Given the current scenario and the technical setup observed, speculation is that the total crypto market cap could reach a level of around $550 billion. This level would represent almost double the current value, suggesting a significant upside opportunity from the current price point.

For investors, this analysis offers a strategic window to potentially capture a bullish cycle. The key is to closely monitor market movements, especially in relation to the POC and the reaction around the Order Block, as any strong buying movement could signal the start of the momentum leg that many are waiting for.

Importance for Investors

For cryptocurrency investors, this type of technical analysis is crucial as it offers insight into market dynamics in areas that are often overlooked, such as volume analysis and correction patterns. The crypto market is notoriously volatile, and understanding where the major support and resistance zones are can be key to protecting and maximizing profits.