A popular crypto analyst, TechDev, is predicting a major altcoin season is on the horizon. This prediction is based on a pattern observed in previous market cycles.
The Four-Year Pattern
TechDev claims that altcoins historically outperform Bitcoin (BTC) under specific conditions. He points to data from 2017 and 2021, showing that a significant altcoin rally followed a particular Bitcoin price action: a new six-month high candle after the overall cycle’s all-time high. This pattern, he says, has only appeared twice in the last eight years, suggesting a roughly four-year cycle.
Bitcoin Dominance and Bollinger Bands
TechDev’s analysis also involves two key indicators:
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Bitcoin Dominance (BTC.D):
This metric tracks Bitcoin’s share of the total crypto market capitalization. A drop in BTC.D indicates altcoins are gaining market share relative to Bitcoin. He notes that significant declines in BTC.D followed the pattern mentioned above, lasting roughly a year and providing ample opportunity for altcoin growth.
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Bollinger Bands:
This technical indicator helps identify periods of high volatility. TechDev observes that when Bitcoin’s price hits the upper band of its weekly Bollinger Bands, altcoins often experience a strong six-month rally.
What This Means for Altcoins
Based on this analysis, TechDev believes that the “TOTAL2” market cap (total crypto market cap excluding Bitcoin and stablecoins), currently at $1.476 trillion, is poised for significant growth. He suggests investors should be prepared for a potential surge in altcoin prices in the coming months.
Disclaimer
Remember, this is just one analyst’s opinion. Cryptocurrency investments are inherently risky, and you should always conduct your own research before investing. This information is not financial advice.
