 ▲ Bitcoin (BTC) |
Daily issues of cryptocurrency media outlets reported new news predicting that an altcoin bull market is approaching.
An analyst working under the pseudonym TechDev reported on the Bitcoin (BTC) Dominance (BTC.D) chart through the claimed to have appeared. The Bitcoin dominance chart is an indicator that tracks the proportion of Bitcoin's market capitalization compared to the total cryptocurrency market capitalization.
TechDev explained that the Bitcoin dominance indicator has formed a bearish divergence for five days, suggesting Bitcoin's loss of momentum compared to altcoins.
He added, “Bitcoin’s dominance has formed a bearish divergence for five days and appears poised for its biggest decline in four years.”
He then explained that the altcoin season will begin soon and presented the Elliott Wave theory, which states that asset price fluctuations alternate between three rising waves and two falling waves. In this regard, he said, “New entrants to the cryptocurrency market will welcome the bottom of the second-stage altcoin wave,” and “now it is time to wait for the third-stage upward wave.”
He also shared an 8-week OTHERS index tracking chart as another evidence to support the altcoin season bullish theory. This indicator is an indicator that tracks the market capitalization of all cryptocurrencies except stablecoins and assets that rank 10th in cryptocurrency market capitalization.
Tech Dev noted that the current situation, where the OTHERS indicator is retesting the exponential moving average (EMA) as support, is similar to the situation in the early stages of the bull market in 2017 and 2020, and noted that altcoins can be expected to strengthen.
