A well-regarded analyst believes that the cryptocurrency market is preparing for the much-anticipated altcoin season, as indicated by a reading that has only occurred 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 poised to outperform Bitcoin (BTC) based on historical data.

To support his claim, the crypto strategist shares a chart demonstrating that in 2017 and 2021, altseason occurred when Bitcoin printed a new six-month candle after surpassing its previous all-time high.

TechDev states, “This particular candle has historically triggered significant movements in altcoins that many have been waiting for over the course of four years.”
(Source: TechDev/X)
Examining the trader’s chart, it appears that altcoins tend to 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.

BTC.D measures the proportion of the total cryptocurrency market cap that belongs to Bitcoin. A bearish BTC.D chart suggests that altcoins are gaining value at a faster rate than Bitcoin.

On closer inspection, TechDev notes that altseason also tends to coincide with Bitcoin reaching the upper range of its Bollinger Bands on the weekly chart.

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

TechDev states, “When Bitcoin reaches this expansion line, it typically triggers a steep six-month rally in altcoins.”
(Source: TechDev/X)
Based on the trader’s chart, it seems that he predicts significant upward movements in the TOTAL2 chart in the coming months. TOTAL2 tracks the market capitalization of all cryptocurrencies excluding Bitcoin and stablecoins.

As of now, TOTAL2 is trading at $1.476 trillion.

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Featured Image: Shutterstock/Digital Store/KWstudio