One closely watched cryptocurrency analyst believes that the time has come for altcoins to witness the steepest leg of their bull market.
Bitcoin dominance (BTC.D) charts are signaling a massive bearish reversal, pseudonymous analyst TechDev told his 460,100 followers on social media platform
The BTC.D index tracks Bitcoin’s share of the overall cryptocurrency market capitalization. The bearish BTC.D chart suggests that the altcoin will soon outperform Bitcoin.
According to TechDev, BTC.D is showing a bearish divergence on the 5-day chart, indicating that Bitcoin is losing momentum against altcoins.
“Bitcoin dominance has been weak for five days, indicating it is poised for its biggest decline in four years.
If you’re new to this, welcome to the bottom of the second wave of altcoins. They hit an all-time high for BTC.
And then we hear, ‘What if there were no altseasons?’
“Wait until you see wave number three.”
TechDev practices the Elliott Wave Theory, which states that bullish assets tend to witness five waves. Here, waves 1, 3, and 5 are upward trends, and waves 2 and 4 are correction periods. According to theory, wave 3 is the longest wave of the rally.
To support his bullish stance on altcoins, the analyst shares an eight-week chart of the OTHERS index, which tracks the market capitalization of all cryptocurrencies except the top 10 digital assets and stablecoins.
According to TechDev’s chart, OTHERS appears to be retesting the exponential moving average (EMA) as support, similar to what happened during the early stages of the 2017 and 2020 bull markets.
“Altcoins.
Do you think it’s over? “They did too.”
Looking at the trader charts, it looks like the EMA is hovering around $200 billion. As of this writing, OTHERS is trading at $222.757 billion.
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