- The altcoin market is showing signs of a significant uptrend, according to a prominent crypto analyst.
- With close to half a million followers, TechDev points out the Bitcoin dominance chart as an indicator of an impending altcoin season.
- “The five-day BTC.D chart’s bearish divergence suggests that altcoins are gaining strength against Bitcoin,” explained TechDev.
Discover the latest trends and insights in the cryptocurrency world, as the altcoin market prepares for a significant breakout, potentially outperforming Bitcoin.
Altcoin Market Ready for a Major Uptrend
The well-respected crypto analyst TechDev has pointed out substantial bearish divergence in the Bitcoin Dominance (BTC.D) chart, signaling a potential bull run for altcoins. BTC.D measures the share of the total cryptocurrency market capitalization attributed to Bitcoin. TechDev explains that this divergence, noted over a five-day chart, could signify that altcoins are poised for a powerful breakout against Bitcoin.
Analysis of Bitcoin Dominance (BTC.D) Chart
TechDev has identified a notable bearish divergence in the BTC.D chart, which means that despite Bitcoin’s market share showing upward movement, momentum indicators suggest weakening strength. According to TechDev, such patterns historically prelude substantial altcoin rallies, particularly during Bitcoin consolidation phases post-record highs. “This is the most significant divergence seen in four years, indicating a major shift towards altcoins,” stated the analyst.
Anticipating the Third Wave in Altcoins
Using Elliott Wave Theory, which categorizes market movements into cyclical waves, TechDev posits that altcoins might be entering their third wave. This theory suggests that the first, third, and fifth waves are upward movements, while the second and fourth waves reflect corrections. The analyst recommends investors prepare for the upcoming third wave, which typically brings significant upward motion. TechDev cites the OTHERS index, representing the total market cap of altcoins excluding the top ten cryptocurrencies, which is currently testing its exponential moving average, as a key indicator for this impending trend.
Conclusion
In conclusion, the analysis indicates a potentially lucrative period ahead for altcoin investors. With signs pointing towards altcoins gaining momentum against Bitcoin, this market dynamic could present promising opportunities for traders and investors. As the altcoin market gears up for possibly a third wave, staying informed and analyzing market indicators will be crucial for capitalizing on these potential gains.
