A well-regarded analyst suggests that the cryptocurrency market is preparing for the highly anticipated altcoin season, as indicated by a rare occurrence that has only happened twice in the past eight years.

The analyst, known as TechDev, informs his 493,800 followers on the social media platform X that altcoins are likely to outperform Bitcoin (BTC) based on historical data.

To support his claim, the crypto strategist presents a chart demonstrating that altseason occurred in 2017 and 2021 when Bitcoin formed a new six-month candle after surpassing the all-time high of the cycle.

TechDev states, “This candle has marked the movement of altcoins that many have been waiting for over the past four years.”


Source:TechDev/X

Upon examining the trader’s chart, it appears that altcoins experience a surge approximately 1,280 days after Bitcoin reaches its cycle peak. When this signal occurred in 2017 and 2021, Bitcoin Dominance (BTC.D) experienced significant declines for a year, allowing altcoins ample time to outperform BTC.

The BTC.D chart tracks the portion of the total crypto market cap that belongs to Bitcoin. A bearish BTC.D chart suggests that altcoins are appreciating at a faster rate than Bitcoin.

Further analysis by TechDev reveals that altseason also tends to coincide with Bitcoin touching the upper range of its Bollinger Bands on the weekly chart.

Traders employ Bollinger Bands to identify potential periods of increased volatility and determine whether an asset is overbought or oversold.

TechDev explains, “When Bitcoin reaches this expansion line, altcoins have experienced a steep upward trend over a six-month period.”


Source:TechDev/X

Based on the trader’s chart, it appears that he predicts significant upward movements in the TOTAL2 chart, which tracks the market capitalization of all crypto assets excluding Bitcoin and stablecoins, in the coming months.

At the time of writing, TOTAL2 is valued at $1.476 trillion.

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