What Inus Says - Weekly Analysis Report Update

"There is a strong tendency for markets to behave in similar patterns over time. Crypto markets are no less cyclical - in fact, they are often more predictable than other assets. It is possible that we are seeing a mini-cycle play out. You have likely heard this story before.

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SMALL CAP BIG GAINS CRYPTO ANALYSIS REPORT UPDATE
WHAT INUS SAYS....
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This is a real good read from what is expected in the crypto markets:

“History doesn’t repeat itself, but it often rhymes” – Mark Twain

"There is a strong tendency for markets to behave in similar patterns over time. Crypto markets are no less cyclical - in fact, they are often more predictable than other assets. It is possible that we are seeing a mini-cycle play out. You have likely heard this story before.
Simply stated, liquidity in the crypto market often flows down hill and we see some variation of the following.

Bitcoin —> Large Caps –> Mid Caps –> Small Caps –> Bitcoin (repeat).

Phase 1 starts with a strong move from the king. When Bitcoin finally begins to break out of a mid to long-term range, we can almost always count on a series of events to play out. The momentum and reliability that follow is a dream for traders of all styles.

After Bitcoin finishes its run and consolidates, there is often an epic spillover of profit-taking and excess liquidity flowing into the majors. The majors are coins like Ethereum, Cardano, Solana, and Polkadot - the large caps at the top of the pecking order by market cap. There is no exact science, but as a general rule of thumb, the top 20 or so coins begin to perform well when Bitcoin cools off. This cycle may be slightly different, as many large caps already had massive moves recently, but I anticipate the general trend of liquidity flowing from Bitcoin to altcoins to be similar.

After the majors take their turn, liquidity flows down the chain into mid caps and then small caps - full-blown alt season tends to commence. The altcoin that you are holding that hasn’t moved in months may finally take its turn as the entire crypto market is lifted by the rising tide. At this point, everyone who has been patient has a chance to win.

Why does this tend to happen?

Bitcoin and Ethereum represent the lion’s share of the total market - BTC is 45% and ETH is 18%. Coins #3 - #10 represent about 16.5% of the total market cap and #11 - +#10,000 represent 20% of the market cap. The weight of the market is extremely skewed to the top few coins. It isn’t even close.
Think about that for a second.
Ethereum is larger by market cap than the next 8 coins combined, and roughly equal to all of the coins from #11 to the bottom of the list. It is easy to forget how large Bitcoin and Ethereum are compared to everything else, because we tend to be wrapped up in our favorite coins. The good news is that the spillover effects from these two are generally HUGE.
If Bitcoin continues to rise, you know what to expect. If it consolidates at this level, then the fun may begin once again for altcoins.

History does not always repeat, and this time can always be different. But it’s good to look at the past to help predict what may happen in the future."
Scott Melker aka The Wolf Of All Streets