Altcoins
Altcoin Enters ‘Textbook Markup’ Period Observed During 2016 and 2021 Market Cycles, Analyst Says
An analyst known for making macro calls on cryptocurrencies believes the altcoin market is poised to trigger strong rallies similar to those seen in 2016 and 2021.
Pseudonymous analyst TechDev tells his 451,900 followers on social media platform
According to the cryptocurrency strategist, OTHERS appears to be following a “textbook” bullish formation after breaking out of a rounded bottom pattern.
“Alts are getting into textbook markup.”
Source: TechDev/X
Looking at the trader’s chart, OTHERS appears to have printed the exact same pattern seen during the 2016 bull market cycle. The TOTAL3 chart, which plots the total market capitalization of cryptocurrencies excluding Bitcoin (Bitcoin), Ethereum (ET) and stablecoins, generated the same pattern in 2021 before launching a major upward explosion.
Based on the chart, TechDev expects OTHERS to reach $1 trillion during the markup phase. At the time of writing, OTHERS is trading at $291.35 billion, suggesting upside potential of more than 243% if it reaches TechDev’s target.
The analyst is also reviewing other relevant charts to support his bullish stance on altcoins. According to TechDev, both Bitcoin (BTC.D) and Tether (USDT.D) the graphs are Flashing bearish signals.
Bitcoin dominance tracks how much of the cryptocurrency market cap belongs to BTC, while Tether dominance measures how much of the cryptocurrency market cap belongs to USDT. If both charts are bearish, it suggests that traders are moving their capital towards altcoins.
“Bitcoin dominance is crumbling due to massive distribution. Tether’s dominance is shrinking as its deployment accelerates. Alternatives have not expanded from this level of macro compression since December 2020. The next narrative is just around the corner.”
TechDev He says the narrative that could trigger an altcoin surge is the launch of Ethereum exchange-traded funds on the spot market.
“Cue the next alternative narrative just in time. ETH ETFs.”
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Featured image: Shutterstock/Vanessa SG/Natalia Siiatovskaia