A highly regarded analyst predicts that the cryptocurrency market is preparing for the long-awaited altcoin season, as indicated by a trend that has only occurred twice in the past eight years.
Known as TechDev, the analyst informs his 493,800 followers on the social media platform X that altcoins are likely to outperform Bitcoin (BTC) based on historical data.
To support his claim, the crypto strategist shares a chart illustrating that altseason occurred in 2017 and 2021 when Bitcoin printed a new six-month candle after surpassing the previous all-time high of the market cycle.
“This particular candle has historically signaled the beginning of a period where altcoins make significant gains that many have been waiting for over four years.”
Source:TechDev/X
Upon examining the chart provided by the trader, it appears that it takes approximately 1,280 days after Bitcoin reaches a cycle peak before altcoins experience a surge in value. When this signal occurred in both 2017 and 2021, Bitcoin Dominance (BTC.D) saw significant declines over the course of a year, allowing altcoins ample time to outperform BTC.
Bitcoin Dominance (BTC.D) measures the proportion of Bitcoin’s market capitalization in relation to the total crypto market. A bearish BTC.D chart indicates that altcoins are gaining value at a faster rate than Bitcoin.
TechDev further suggests that altseason tends to coincide with Bitcoin tapping the upper range of its Bollinger Bands on the weekly chart. Traders utilize Bollinger Bands to identify potential periods of increased volatility and determine whether an asset is overbought or oversold.
“Whenever Bitcoin reaches this upper threshold, altcoins experience a sharp upward trend lasting around six months.”
Source:TechDev/X
Based on the trader’s analysis, it is anticipated that the TOTAL2 chart, which tracks the market capitalization of all cryptocurrencies excluding Bitcoin and stablecoins, will witness substantial growth in the coming months.
As of the time of writing, TOTAL2 is valued at $1.476 trillion.
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