A crypto analyst, known as TechDev, is predicting a massive surge in altcoin prices. He’s been tracking a specific market indicator for years and believes it’s about to explode.
A Five-Year-in-the-Making Signal
TechDev shared his analysis on X (formerly Twitter), pointing to a chart called “TOTAL3.” This chart tracks the total market cap of all cryptocurrencies except Bitcoin, Ethereum, and stablecoins. His analysis, using three-month intervals, shows TOTAL3 breaking out of a long-term pattern that started forming back in 2020. He calls this a “macro altcoin expansion,” something he hasn’t seen since late 2020. This time, however, it follows a much longer period of consolidation.
The Livermore Cylinder Pattern
TechDev says the altcoin market’s movement fits a pattern identified by legendary trader Jesse Livermore, called a “Livermore Accumulation Cylinder.” This pattern typically shows prices rising within a range, making higher highs and higher lows, before a final, dramatic breakout. TechDev believes this final breakout is imminent.
Stablecoins: The Missing Piece?
TechDev is also looking at stablecoins. He’s tracking what he calls “stablecoin deployment,” essentially the opposite of stablecoin dominance. He argues that as more stablecoins are used, it generally boosts overall crypto prices. However, he notes that previous increases in stablecoin deployment only led to temporary price rises. He believes this time is different, predicting a significant, unprecedented breakout.
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