Crypto markets often follow cycles, with past trends influencing future movements. Analyst Max (@MaxBecauseBTC) believes PEPE could be this cycle’s DOGE.
In a tweet, Max highlighted a historical pattern showing how DOGE gained momentum after Bitcoin (BTC) entered price discovery. The analyst suggests PEPE may follow a similar trajectory. If history repeats, PEPE’s biggest gains may come after BTC stabilizes post-correction.
What you'll learn 👉
BTC’s Role in Market Cycles
Bitcoin’s cycle often dictates broader market trends. Analysts use BTC’s price discovery phase to track altcoin behavior. In previous cycles, BTC surged past its all-time high (ATH), entered price discovery, and then faced its first major correction. This phase allowed liquidity to shift into altcoins, fueling parabolic rallies.
Max’s chart highlights this phenomenon, showing how BTC’s post-ATH correction marked a turning point for DOGE. According to the analysis, a similar setup could be forming for PEPE.
$PEPE is the $DOGE of this cycle.#Doge put in the majority of its returns last cycle AFTER $BTC came out of its first correction once in price discovery.
— Max (@MaxBecauseBTC) January 15, 2025
That means that everything you've seen so far on #Pepe has been a test pump. Choose to believe in something 🐸 pic.twitter.com/8FpeTm6oFi
DOGE’s Explosive Growth After BTC’s Correction
The comparison draws attention to DOGE’s behavior in past cycles. Max pointed out that DOGE moved sideways while BTC pushed toward its ATH. However, when BTC corrected after price discovery, DOGE skyrocketed.
The chart suggests DOGE’s breakout happened when BTC’s dominance weakened, leading traders to shift focus to altcoins. Max argues PEPE could follow a comparable path, positioning itself for an upward surge once BTC stabilizes.
PEPE’s Current Market Position
Max’s analysis places PEPE in a phase similar to DOGE’s early-stage accumulation. PEPE remains range-bound while BTC has tested and surpassed previous ATH levels. If the pattern holds, PEPE could experience its most significant rally once BTC exits its correction phase.
The analyst describes PEPE’s past price action as a “test pump.” This suggests the real breakout may still be ahead, depending on BTC’s broader market influence. At press time, PEPE trades at $0.0000185, showing gains over the past day and week.
Read also: Why is Kaspa (KAS) Price Pumping?
Altcoin Season and Market Sentiment
Market sentiment plays a crucial role in timing these moves. Historically, altcoins rally when BTC stabilizes after a major run. If BTC dominance decreases, traders may rotate profits into assets like PEPE.
Max’s analysis implies that PEPE’s potential for an explosive rally aligns with DOGE’s past performance. However, as with any market projection, external factors could influence the outcome.
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