Analyst and trader Kevin Svenson believes that the most explosive phase of the cycle for altcoins is yet to come.
In another strategy session, Svenson tells its 81,300 YouTube subscribers think that based on historical priority, the TOTAL3 card could soon have an astronomical breakthrough.
The TOTAL3 chart tracks the market capitalization of all crypto assets, excluding Bitcoin (BTC), Ethereum (ETH) and stablecoins.
“[In 2021] Bitcoin reached a very high price and just started chopping. And as it spun around, TOTAL3 went to the moon.”
Svenson predicts that the most explosive season for alts will begin around the 40th week after the April 2024 halving, when miner rewards were halved, which would be around the end of January.
“So in this cycle, altcoins are currently not even the 40th week post-halving. We didn’t even reach the all-time high break. In the last cycle, when you broke that high, it was 170% for the TOTAL3 as a whole, up 170%. Maybe it won’t be that much of a percentage, but we still have a big step ahead of us…
The most bullish part of the cycle hasn’t even started yet, hasn’t even started yet. So we still have a few weeks to go where Bitcoin can become really, really bullish and stay bullish. And the altcoins, in my opinion, will also be looking for a big pump in the coming months.”
Looking at his chart, the analyst suggests that TOTAL3’s market cap could be around $2 trillion at the cycle peak, up from the current $982.2 billion.
Svenson also believes that the dominance level of the flagship crypto (BTC.D) will soon start to decline.
The BTC.D is the ratio of the market capitalization of BTC versus the market capitalization of all crypto assets combined.
“What you’ll notice in previous cycles is that right after the 40th week – the halving happens, 40 weeks later – that’s when [Bitcoin] The dominance is really starting to decline…
Once we get into this green zone after the 40th week, I think Bitcoin’s dominance will take a big dip, and altcoins will take over.”
Looking at his chart, the analyst suggests that BTC.D could fall to around 42% within six months.
At the time of writing, BTC.D is at 58.01%.
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Generated image: Midjourney