A closely followed analyst believes that crypto is gearing up to witness the highly anticipated altcoin season as the market gives off a reading seen only twice in eight years.
Pseudonymous analyst TechDev tells his 493,800 followers on the social media platform X that altcoins are poised to outperform Bitcoin (BTC) based on historical data.
The crypto strategist shares a chart to show that in 2017 and 2021, altseason happened when Bitcoin printed a new six-month candle after surpassing the cycle’s all-time high.
“This has been the candle that altcoins make the moves many wait four years for.”
Looking at the trader’s chart, he seems to suggest that it takes 1,280 days after Bitcoin prints a cycle top before altcoins can go on a rampage. When the signal appeared in 2017 and 2021, Bitcoin Dominance (BTC.D) saw sharp declines for one year, giving altcoins a lot of time to outperform BTC.
The BTC.D chart tracks how much of the total crypto market cap belongs to Bitcoin. A bearish BTC.D chart suggests that altcoins are gaining value faster than Bitcoin.
Zooming in, TechDev says altseason also tends to happen when Bitcoin taps the upper range of its Bollinger Bands on the weekly chart.
Traders use the Bollinger Bands to identify potential periods of volatility expansion and determine whether an asset is overbought or oversold.
“When Bitcoin hits this expansion line, altcoins have gone on a steep six-month run.”
Based on the trader’s chart, he seems to predict that the TOTAL2 chart, which tracks the market cap of all crypto assets excluding Bitcoin and stablecoins, will witness huge upside bursts in the coming months.
At time of writing, TOTAL2 is trading for $1.476 trillion.
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Featured Image: Shutterstock/Digital Store/KWstudio
