A popular crypto analyst, TechDev, predicts an altcoin boom is on the horizon. Based on historical data from 2017 and 2020, TechDev believes several indicators point to altcoins soon outperforming Bitcoin.
Bitcoin Dominance and Other Key Indicators
TechDev’s analysis focuses on several key metrics:
-
Bitcoin Dominance (BTC.D): This metric tracks Bitcoin’s share of the overall crypto market. A drop in BTC.D usually suggests altcoins are gaining ground. TechDev’s charts show a significant BTC.D drop after Bitcoin broke past previous cycle highs in past bull runs.
-
Bitcoin’s Bollinger Bands: Bitcoin recently touched the upper bound of its Bollinger Bands on the weekly chart. This technical indicator often signals potential price reversals, suggesting a possible shift in favor of altcoins.
-
Bitcoin’s Relative Strength Index (RSI): Bitcoin’s RSI on the two-month chart has broken above 70, indicating it’s in overbought territory. This is often seen before a correction, potentially benefiting altcoins.
-
Bitcoin’s M1 Money Supply Comparison: TechDev notes similarities between Bitcoin’s current price action and its behavior during the 2017 bull run, specifically concerning its interaction with the M1 money supply (a measure of US money in circulation).
The Analyst’s Conclusion
TechDev concludes that Bitcoin’s current parabolic price movement, coupled with the other indicators mentioned above, strongly suggests an upcoming altcoin season. He highlights the historical precedent of altcoins surging after Bitcoin experiences similar price action. However, he doesn’t offer a precise timeline for when this altcoin season will begin.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing in cryptocurrencies./p>
