A closely followed crypto strategist thinks that it is almost time for altcoins to steal Bitcoin’s (BTC) thunder.
Pseudonymous analyst TechDev tells his 481,600 followers on the social media platform X that he’s looking at historical price action to determine the arrival of a new altseason.
According to the trader, data from crypto’s 2017 and 2020 bull markets suggest that a fresh altseason is on the horizon.
“When altseason?
Not sure.
But the last two started after three consecutive weekly closes over the last Bitcoin weekly high…”
Based on the trader’s chart, he seems to suggest that Bitcoin Dominance (BTC.D) took a massive plunge after BTC broke out from previous cycle highs and rallied for three weeks.
The BTC.D index tracks how much of the total crypto market cap belongs to Bitcoin. A bearish BTC.D chart suggests that altcoins are about to outperform Bitcoin.
TechDev shares another chart indicating that altcoins are on the verge of outshining BTC.
“Another altseason trigger?
When Bitcoin touches this line…”
TechDev seems to think that an altcoin season is now in sight after Bitcoin tapped the upper bound of its Bollinger Bands (BB) indicator on the weekly chart. Traders use the Bollinger Bands to spot potential entry and exit points based on historical volatility.
Looking at Bitcoin itself, TechDev believes the crypto king has entered parabolic territory after its Relative Strength Index (RSI) on the two-month chart broke above the 70 level.
The RSI is a momentum indicator where a move above 70 suggests an asset is in bull territory.
“Welcome back to the parabolic zone.”
The trader also thinks that Bitcoin appears to be mirroring its 2017 bull market when BTC in its M1 money supply pair (BLX/WM1NS) breached and retested the upper bound of the Bollinger Bands as support on the monthly chart.
“There’s only one other time worth comparing this Bitcoin move to.”
The M1 money supply chart tracks all the money sloshing in the US economy.
At time of writing, Bitcoin is trading for $98,508.
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Featured Image: Shutterstock/svetabelaya/WindAwake
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