An influential crypto analyst has indicated that altcoins are on the verge of experiencing a significant surge, based on technical indicators.
TechDev, a pseudonymous analyst with a following of 452,400 on the social media platform X, has pointed out that various indicators suggest that the crypto market is following a pattern similar to the one in 2020, which led to a massive bull cycle.
According to TechDev’s two-month chart of the total market capitalization, digital assets seem to be primed for a major breakout. The analyst’s chart utilizes Bollinger bands (BB), a measure of price volatility that typically sees its upper and lower bands contract during periods of low volatility, indicating an impending increase.
The chart indicates that the indicator has contracted to levels reminiscent of those seen before substantial upward movements in 2020, which continued into 2021.
TechDev also mentions other indicators that suggest a market expansion is underway, including the Gaussian channel on the two-week Ethereum (ETH) chart, which indicates that the top altcoin is likely entering a bull cycle.
Gaussian channels are momentum indicators that can be used to identify price reversals.
In addition, the analyst notes that the Bollinger bands on the two-month OTHERS chart, which tracks the total market capitalization of cryptocurrencies excluding the top 10 digital assets and stablecoins, also appear bullish. The analyst has previously stated that the altcoin market is poised for significant rallies similar to those witnessed in 2016 and 2021.
TechDev concludes that the overall market trend suggests that Bitcoin and altcoins are both poised for substantial growth.
Please note that this article is for informational purposes only and should not be considered as investment advice. Readers should conduct their own research and exercise caution when investing in Bitcoin, cryptocurrencies, or digital assets.