15h00 ▪
3
min reading ▪ by
Evans S.
Crypto is going through a pivotal period, and industry analysts are holding their breath. A historic signal, seen only twice in the past eight years, appears to indicate an impending altseason. For investors and crypto enthusiasts, this news could well redefine opportunities in the short term.
A historic signal: the kick-off of altcoins?
The TechDev analyst, followed by nearly 500,000 followers on the X platform, where Elon Musk aims to reduce “negativity”, does not mince his words: altcoins are preparing to take center stage in the crypto scene.
Building on the previous cycles of 2017 and 2021, it highlights an intriguing pattern. According to him, a six-month candle on the bitcoin chart, following a crossing of all-time highs, systematically marks the start of a surge in altcoins.
These cycles, closely linked to the dominance of Bitcoin (BTC.D), reveal a key dynamic. When this metric declines, the market share of altcoins increases drastically.
In other words, when Bitcoin loses dominance, it leaves room for altcoins to outperform.
The phenomenon also appears to be linked to Bollinger Bands, a well-known technical indicator. TechDev notes that when Bitcoin hits the upper end of these bands on a weekly chart, altcoins typically enjoy a dramatic surge.
Towards an explosive altseason?
Beyond technical signals, the implications for the crypto market are immense. The TOTAL2 chart, which measures the market capitalization of all crypto assets excluding Bitcoin and stablecoins, suggests a coming explosion. Currently valued at $1,476 billion, this market could soon reach unprecedented heights.
For savvy investors, this altseason could represent much more than just a profit opportunity. It signals a shift in the crypto market towards increased diversification, where altcoins are gaining maturity and relevance. However, as always in the crypto world, caution remains in order. Meanwhile, MicroStrategy plans 2 billion to strengthen its position in Bitcoin.
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Evans S.
Fascinated by bitcoin since 2017, Evariste has continued to research the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
