Cryptocurrency is going through a critical phase and industry analysts are holding their breath. A historical signal, observed only twice in the past eight years, appears to indicate an upcoming altseason. For investors and cryptocurrency enthusiasts, this news could redefine short-term opportunities.
A Historical Signal: The Beginning of Altcoins?
TechDev analyst, with nearly 500,000 followers on platform X, where Elon Musk wants to reduce "negativity", has stated directly: altcoins will become the focal point in the cryptocurrency world.
Based on previous cycles of 2017 and 2021, he highlights an intriguing pattern. According to him, a six-month candle on the Bitcoin chart, after breaking through historical highs, systematically marks the beginning of an altcoin bull run.
These cycles, closely related to Bitcoin's dominance (BTC.D), reveal an important dynamic. When this metric decreases, the market share of altcoins rises sharply. In other words, when Bitcoin loses its dominant position, it opens up opportunities for altcoins to excel.
This phenomenon also seems to be related to Bollinger Bands, a well-known technical indicator. TechDev notes that when Bitcoin reaches the upper limit of these bands on the weekly chart, altcoins often benefit from a spectacular price surge.
Towards an Explosive Season?
In addition to technical signals, the impact on the cryptocurrency market is significant. The TOTAL2 chart, which measures the market capitalization of all cryptocurrency assets except Bitcoin and stablecoins, suggests an impending explosion. Currently valued at $1.476 trillion, this market could soon reach unprecedented heights.
For savvy investors, this altcoin season could represent more than just a profit opportunity. It signals the evolution of the cryptocurrency market towards greater diversification, where altcoins achieve maturity and relevance. However, as is often the case in the cryptocurrency universe, caution remains essential. Meanwhile, MicroStrategy plans to invest $2 billion to strengthen its position on Bitcoin.
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