A closely watched crypto analyst thinks it’s almost time for altcoins to witness the steepest leg of the bull market.
Pseudonymous analyst TechDev tells his 460,100 followers on social media platform X that the Bitcoin dominance chart (BTC.D) is showing a huge bearish reversal signal.
The BTC.D index tracks how much of the total crypto market capitalization belongs to Bitcoin. A bearish BTC.D chart suggests altcoins are poised to outperform Bitcoin.
According to TechDev, BTC.D is to show a bearish divergence on the five-day chart, indicating Bitcoin is losing momentum against altcoins.
“The five-day bearish divergence on Bitcoin dominance says it is poised for the biggest decline in four years.
Those new to this, welcome to the second wave of altcoins. They join all-time BTC consolidations.
And you hear about ‘What if there is no altseason?’
Wait until you see wave three.”
TechDev applies the Elliott Wave theory, which states that a bullish asset tends to witness a wave of five waves, with waves one, three and five being upward moves and waves two and four being corrective periods. The theory also states that wave three is the longest wave of the rally.
To support his bullish stance on altcoins, the analyst shares an eight-week chart of the OTHERS index, which tracks the market capitalization of all cryptocurrencies except the top ten digital assets and stablecoins.
According to TechDev’s chart, OTHERS appears to be retesting its exponential moving average (EMA) as support, similar to what happened in the early stages of the 2017 and 2020 bull markets.
“Altcoins.
Do you think it’s over? They did that too.”
Looking at the trader’s chart, it appears that the EMA is hovering around $200 billion. At the time of writing, OTHERS is trading for $222.757 billion.
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Generated image: Midjourney