A closely followed analyst believes that crypto is preparing to witness the highly anticipated altcoin season, as the market gives a reading seen only twice in eight years.
Pseudonymous analyst TechDev tells his 493,800 followers on social media platform X that altcoins are poised to outperform Bitcoin (BTC) based on historical data.
The crypto strategist shares a chart showing that in 2017 and 2021, another season occurred when Bitcoin printed a new six-month candle after surpassing the all-time cycle high.
“This is the candle that altcoins are moving and that many have been waiting for for four years.”
Looking at the trader’s chart, it seems to suggest that it takes 1,280 days after Bitcoin prints a cycle top before altcoins can go wild. When the signal emerged in 2017 and 2021, Bitcoin Dominance (BTC.D) saw steep declines for a year, giving altcoins plenty of time to outperform BTC.
The BTC.D chart shows how much of the total crypto market cap belongs to Bitcoin. A bearish BTC.D chart suggests altcoins are gaining value faster than Bitcoin.
Zooming in, TechDev says a new season also tends to occur when Bitcoin exploits the upper range of its Bollinger bands on the weekly chart.
Traders use Bollinger Bands to identify potential periods of volatility expansion and determine whether an asset is overbought or oversold.
“When Bitcoin reached this expansion line, altcoins experienced a strong run for six months.”
Based on the trader’s chart, he appears to predict that the TOTAL2 chart, which tracks the market cap of all crypto assets excluding Bitcoin and stablecoins, will see huge surges higher in the coming months.
At the time of writing, TOTAL2 is trading at $1.476 trillion.
Don’t miss a thing – Subscribe to receive email alerts straight to your inbox
Check Price Action
Follow us on XFacebook and Telegram
Surf the daily Hodl mix
& nbsp
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Digital Store/KWstudio
