- Bitcoin and TOTAL have reached sustained new highs, while TOTAL2, TOTAL3, and OTHERS remain below peaks but show consolidation strength.
- Liquidity is expected to rotate from Bitcoin into large caps like Ethereum before moving into mid- and small-cap crypto assets.
- A five-year cup and handle pattern on the TOTAL chart signals an approaching breakout that may drive accelerated market-wide growth.
Bitcoin’s parabolic advance appears to be in its early stages, with market-wide liquidity yet to fully rotate into altcoins. Analysts note that multiple major market indices have not yet reached new highs.
Bitcoin’s Position in the Current Cycle
Market analyst Sykodelic stated that Bitcoin and the TOTAL market cap index are the only ones sustaining new highs so far. The TOTAL2, TOTAL3, and OTHERS indices remain below previous peaks but are consolidating. These patterns suggest they are coiling for potential breakouts.
According to Sykodelic, Bitcoin is currently entering the early phase of a parabolic move. This stage typically sees dominance from Bitcoin before altcoins begin their larger upward moves. Ethereum is expected to test its all-time highs soon, leading other large-cap cryptocurrencies higher.
The analyst emphasized that market participants discussing a top at this stage are premature. Current structures show that the broader liquidity cycle has not yet played out, indicating further growth potential ahead.
Liquidity Rotation and Market Sequence
Sykodelic described a sequence where TOTAL2 breaks higher before TOTAL3 follows. This progression would then shift liquidity into smaller-cap assets, including those tracked by the OTHERS index. Such rotations have historically marked the expansion phase of bull markets.
Ethereum’s anticipated rally toward previous records could trigger the next leg of the liquidity cycle. Large-cap coins often move first before mid- and small-cap assets gain momentum. The ongoing consolidation in broader indices supports the case for upcoming breakouts.
He also cautioned that it will be very easy to overestimate this phase of the market and therefore end up missing big opportunities. For traders, identifying the time of these rotations will be very significant in taking advantage of the overall trend.
Technical Patterns on the TOTAL Chart
A key technical factor supporting this view is the formation of a five-year cup and handle pattern on the TOTAL chart. Sykodelic noted that the structure is close to a breakout point. Historically, such patterns have preceded sustained bullish moves in crypto markets.
The analyst described current conditions as the early build-up before the main acceleration phase. Once TOTAL breaks higher, altcoins could experience rapid inflows of capital.
Sykodelic urged market participants to recognize the stage of the cycle rather than assume a premature top. With the primary liquidity wave yet to unfold, the current setup may lead into the most active phase of the bull market.
