The cryptocurrency market is abuzz with excitement as a well-known analyst predicts the onset of the highly anticipated altcoin season. TechDev, a pseudonymous analyst with a large following on X, has shared his insights with his 493,800 followers, suggesting that altcoins are gearing up to outperform Bitcoin based on historical data.
TechDev points to a chart that illustrates how in 2017 and 2021, altseason occurred when Bitcoin printed a new six-month candle after surpassing the cycle’s all-time high. According to the analyst, this particular candle has historically been a signal for altcoins to make significant moves that investors have been eagerly waiting for.
The chart provided by TechDev indicates that it typically takes 1,280 days after Bitcoin reaches a cycle top before altcoins start to surge. In both 2017 and 2021, Bitcoin Dominance (BTC.D) experienced sharp declines for a year, allowing altcoins to outperform Bitcoin significantly.
Bitcoin Dominance is a metric that tracks the proportion of the total cryptocurrency market cap that belongs to Bitcoin. A declining BTC.D chart suggests that altcoins are gaining value at a faster rate than Bitcoin, signaling a potential altcoin rally.
TechDev also notes that altseason tends to coincide with Bitcoin tapping the upper range of its Bollinger Bands on the weekly chart. Bollinger Bands are a technical analysis tool used to identify periods of volatility expansion and determine whether an asset is overbought or oversold. According to TechDev, when Bitcoin hits this expansion line, altcoins have historically experienced a steep six-month rally.
Looking ahead, TechDev predicts that the TOTAL2 chart, which tracks the market cap of all cryptocurrencies excluding Bitcoin and stablecoins, is poised for significant growth in the coming months. Currently trading at $1.476 trillion, TOTAL2 could see substantial upside movements according to the analyst’s projections.
As the cryptocurrency market gears up for what could be a major altcoin season, investors are advised to stay informed and monitor price action closely. To stay updated on the latest developments in the crypto space, be sure to subscribe to receive email alerts and follow reputable sources on social media platforms like X, Facebook, and Telegram.
In conclusion, the outlook for altcoins appears bullish as historical data and technical indicators point to a potential surge in altcoin performance relative to Bitcoin. With the market showing signs of an impending altcoin season, investors are advised to stay vigilant and seize potential opportunities in the evolving cryptocurrency landscape.