A closely watched analyst believes crypto is gearing up to witness the much-awaited altcoin season as the market returns a figure seen only twice in eight years.
Pseudonymous analyst TechDev tells his 493,800 followers on social media platform X that altcoins are poised to outperform Bitcoin (BTC) based on historical data.
The crypto strategist shares a chart to show that in 2017 and 2021 altseason occurred when Bitcoin printed a new six-month candle after surpassing the cycle’s all-time high.
“This is the candle for altcoins to make the moves that many wait four years for.”
Looking at the trader’s chart, he seems to suggest that it will take 1,280 days after Bitcoin prints a cycle top for altcoins to take off. When the signal appeared in 2017 and 2021, Bitcoin Dominance (BTC.D) saw a year of sharp declines, giving altcoins a lot of time to outperform BTC.
The BTC.D chart tracks how much of the total crypto market capitalization belongs to Bitcoin. A bearish BTC.D chart suggests that altcoins are gaining value faster than Bitcoin.
Zooming in, TechDev says that altseason also often occurs when Bitcoin reaches the upper range of its Bollinger Bands on the weekly chart.
Traders use the Bollinger Bands to identify potential periods of increase in volatility and to determine whether an asset is overbought or oversold.
“When Bitcoin hit this expansion line, altcoins went on a steep six-month run.”
Based on the trader’s chart, he seems to predict that the TOTAL2 chart, which tracks the market capitalization of all crypto assets excluding Bitcoin and stablecoins, will see massive upside bursts in the coming months.
At the time of writing, TOTAL2 is trading at $1.476 trillion.
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Featured image: Shutterstock/Digital Store/KWstudio