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Crypto is going through a pivotal period, and industry analysts are holding their breath. A historic signal, observed only twice over the past eight years, seems to indicate an impending altseason. For investors and crypto enthusiasts, this news could redefine short-term opportunities.
A historic signal: the kickoff of altcoins?
Analyst TechDev, followed by nearly 500,000 followers on platform X, where Elon Musk aims to reduce “negativity”, does not mince his words: altcoins are set to take center stage in the crypto world.
Drawing on the previous cycles of 2017 and 2021, he highlights an intriguing model. According to him, a six-month candle on the Bitcoin chart, following a break of historical highs, systematically marks the beginning of an altcoin surge.
These cycles, closely linked to Bitcoin’s dominance (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 the field open for altcoins to outperform.
The phenomenon also seems related to Bollinger Bands, a well-known technical indicator. TechDev notes that when Bitcoin reaches the upper end of these bands on a weekly chart, altcoins generally benefit from a spectacular push.
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, hints at an explosion to come. Currently valued at $1.476 trillion, this market could soon reach unprecedented heights.
For savvy investors, this altseason could represent much more than just a profit opportunity. It signals an evolution of the crypto market towards increased diversification, where altcoins gain maturity and relevance. However, as always in the crypto universe, caution remains essential. Meanwhile, MicroStrategy plans $2 billion to strengthen its position on Bitcoin.
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Fasciné par le bitcoin depuis 2017, Evariste n’a cessé de se documenter sur le sujet. Si son premier intérêt s’est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l’état du secteur dans son ensemble.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
