Crypto analyst TechDev believes altcoins are on the cusp of a significant rally, with Bitcoin’s dominance set for its biggest drop in four years.
Bitcoin Dominance Weakness
TechDev’s analysis shows a bearish divergence on the five-day Bitcoin dominance chart, indicating that Bitcoin is losing momentum against altcoins. He expects this divergence to lead to a steep decline in Bitcoin’s dominance.
Altcoins on the Rise
To support his bullish stance on altcoins, TechDev points to the OTHERS index, which tracks the market capitalization of non-top-ten cryptocurrencies. The index has recently retested its exponential moving average (EMA) as support, a pattern similar to the early stages of previous bull markets.
Elliott Wave Theory
TechDev applies Elliott Wave theory to his analysis, which suggests that the current bull market will consist of five waves, with wave three being the longest and most significant. He believes altcoins are currently in wave two, a corrective period before the major surge of wave three.
Bottom of Altcoin Wave Two
TechDev advises that investors who are new to the crypto market are currently witnessing the bottom of altcoin wave two. He cautions that altcoins may underperform during Bitcoin’s all-time high consolidations, but emphasizes that wave three will be even more significant.
