TechDev, a popular pseudonymous analyst, is predicting that digital asset markets are gearing up for a rapid expansion to the upside. The analyst notes that before each Bitcoin (BTC) run to all-time highs, the Chinese 10-year note bottomed out and the moving average convergence divergence (MACD) indicator crossed bullish. The MACD is a technical indicator designed to signal a possible reversal in trend, and the analyst believes that this happened before every ATH-setting Bitcoin move. TechDev’s analysis suggests that altcoins are now in the markup phase and poised for higher prices based on historical patterns.
The analyst looks at the total crypto market cap excluding Bitcoin and identifies periods of downward price action (correction), sideways movement (accumulation), and price rallies (markup). According to the analyst, all charts appear to be following their market structures between 2016 and 2018, suggesting that multiple metrics are aligning to signal an explosion in the altcoin markets. TechDev compares the altcoin market cap against four other charts, including Bitcoin dominance chart (BTC.D), which compares the market cap of Bitcoin to that of the rest of the crypto markets and the dollar index (DXY), which pits the dollar against a basket of other major currencies.
For the DXY, TechDev suggests that the dollar index appears to have topped out, indicating that investors are starting to make their capital work in risk assets such as crypto. Looking at the Bitcoin dominance chart, TechDev appears to predict a massive breakdown for BTC.D, similar to what happened between 2016 and 2018. A bearish BTC.D chart indicates that altcoins are growing faster in value than BTC.
The analyst’s analysis is based on historical patterns, and while past performance is not an indication of future results, it does provide a roadmap for what may happen in the future. Investors should always do their due diligence before investing in high-risk assets such as cryptocurrencies, as any losses incurred are their responsibility. The Daily Hodl, where TechDev’s analysis was originally shared, reminds readers that the opinions expressed are not investment advice, and the site does not recommend buying or selling any cryptocurrencies or digital assets.
While the crypto markets are notoriously volatile, those who believe in the long-term potential of blockchain technology and cryptocurrencies may see this as an opportunity to invest in projects that they believe in. The crypto industry has come a long way since Bitcoin’s inception in 2009 and is now home to innovative projects such as DeFi and NFTs. The total crypto market cap hit an all-time high of over $2.5 trillion in May 2021, indicating that the industry is gaining mainstream acceptance.
In conclusion, TechDev’s analysis suggests that altcoin markets are gearing up for an explosion in the coming months. While past performance is not an indication of future results, the analyst’s analysis helps investors understand the potential direction of the markets. Investors should always do their due diligence before investing in high-risk assets such as cryptocurrencies, and past performance is not an indication of future results. Those who believe in the long-term potential of the crypto industry may see this as an opportunity to invest in innovative projects and technologies.
