Analyst and trader Kevin Svenson believes the most explosive phase of the altcoin cycle is yet to come.
In a new strategy session, Svenson told his 81,300 YouTube subscribers that based on historical precedent, the TOTAL3 chart could soon see an astronomical breakthrough.
The TOTAL3 chart tracks the market capitalization of all cryptocurrency assets except Bitcoin (BTC), Ethereum (ETH), and stablecoins.
“(In 2021) Bitcoin has reached a really high price and is just starting to cut. And while it was being cut down, TOTAL3 went to the moon.”
Svensson predicts that alts’ most explosive season will begin around the end of January, around 40 weeks after the April 2024 halving event, when miners’ rewards will be halved.
“So at this point in this cycle, altcoins are currently less than 40 weeks post-halving. We haven’t even hit an all-time high. When it broke that high last cycle, the stock price of TOTAL3 as a whole was up 170%, 170%. Maybe the percentage isn’t that high, but still, big changes are ahead of us…
The most optimistic part of the cycle has not yet begun, and has not yet begun. So we have a few more weeks left for Bitcoin to really get strong and continue to do so. And I think altcoins will also see big gains in the coming months.”
Looking at his chart, the analyst suggests that TOTAL3 market capitalization could reach around $2 trillion at its full cycle peak, up from the current $982.2 billion.
Svenson also believes that the level of dominance of the flagship cryptocurrency (BTC.D) will soon begin to decline.
BTC.D is the ratio of the market capitalization of BTC and the market capitalization of all cryptocurrency assets.
“What we know from previous cycles is that right after week 40 (40 weeks after the halving occurs), (Bitcoin’s) dominance really starts to plummet.
Once the 40-week mark enters this green zone, Bitcoin’s dominance will begin to shake significantly and altcoins will take over dominance.”
Looking at his charts, the analyst suggests that BTC.D could fall by around 42% within six months.
As of this writing, BTC.D is at 58.01%.
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