An influential crypto analyst is indicating that the altcoin market is primed for a significant breakout, according to technical indicators. Going by the pseudonym TechDev, the analyst shares his insights with his large following of 446,400 users on the social media platform X. He suggests that the altcoin market cap structure is displaying a familiar bullish pattern that has occurred in the past. By examining his charts, TechDev identifies that the crypto market cap, excluding the top 10 digital assets, is mirroring a pattern observed during the market cycles of 2016 and 2021. In these cycles, the market experienced a breakout, retracement, and subsequent surge to a new high.
Furthermore, TechDev points out that the logarithmic moving average divergence (LMACD) indicator for the altcoin market cap is indicating a breakout trend. The LMACD indicator is designed to detect changes in an asset’s trend, strength, and momentum. TechDev confidently states that altcoins are prepared for a breakout, even if the overall market is not yet ready.
Turning his attention to Bitcoin (BTC), TechDev analyzes the two-month chart and concludes that the cryptocurrency is approximately halfway through its current cycle, based on historical precedents and the behavior of Bollinger bands. These bands serve as a measure of price volatility, with wider bands indicating decreased volatility and contracting bands suggesting an imminent surge in volatility.
At the time of writing, Bitcoin is trading at $67,059, experiencing a nearly 3.6% increase in the past 24 hours.
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