An analyst known for his macro crypto talks thinks the altcoin market is poised to produce steep rallies similar to those of 2016 and 2021.
The pseudonymous analyst TechDev tells his 451,900 followers on the social media platform
According to the crypto strategist, OTHERS appears to be following a “textbook” bullish formation after breaking a rounded bottom pattern.
“Alts enter textbook marks.”
Looking at the trader’s chart, it appears that OTHERS have displayed the exact same pattern as during the 2016 bull market cycle. The TOTAL3 chart, which shows the total market cap of crypto excluding Bitcoin (BTC), Ethereum (ETH) and tracks stablecoins, also generated the same pattern in 2021 before launching a big surge to the upside.
Based on the chart, TechDev predicts that OTHERS will rise to as much as $1 trillion during the markup phase. At the time of writing, OTHERS is hovering around $291.35 billion, suggesting upside potential of over 243% if it hits TechDev’s target.
The analyst also looks at other relevant charts to support his bullish stance on altcoins. According to TechDev, both Bitcoin dominance (BTC.D) and Tether dominance (USDT.D) are charts flashing bearish signals.
Bitcoin dominance tracks how much of the crypto market cap belongs to BTC, while Tether dominance measures how much of the crypto market cap belongs to USDT. If both charts are bearish, it suggests that traders are moving their capital into altcoins.
“Bitcoin’s dominance is being broken down by massive distribution. Tether’s dominance is declining in the acceleration phase of its distribution. Alts have not exceeded this level of macro compression since December 2020. The next story is just around the corner.”
TechDev say The story that could spark an altcoin wave is the launch of spot-traded Ethereum funds.
“Cue the next alternative story just in time. ETH ETF.”
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Featured image: Shutterstock/Vanessa SG/Natalia Siiatovskaia