On Twitter, an analyst named TechDev claimed that the dominant chart of Bitcoin (BTC) is sending out significant bearish reversal signals.
The Bitcoin Dominance Index (BTC.D) measures the capitalization of Bitcoin relative to the rest of the cryptocurrency market. The bearish trend of BTC.D indicates that altcoins are preparing to surpass Bitcoin.
Technical development is difficult, and the BTC.D chart shows bearish divergence within a five-day timeframe, indicating a weakening dominance of Bitcoin, which is favorable for altcoins.
The five-day bearish divergence sets the dominance of Bitcoin, suggesting that the asset is poised for its largest decline in four years. For those just entering the field, welcome to the bottom of the second altcoin wave… People often wonder if there will be an altcoin season. Wait for the third wave.
Read more:
Bitcoin continues to decline: What should we focus on this week?
The analyst used Elliott Wave Theory, which suggests that bullish assets typically follow a five-wave pattern, with the first, third, and fifth waves being bullish trends, and the second and fourth waves being corrective waves. According to the theory, the third wave is usually the longest and most significant rebound period.
To support its bullish prediction for altcoins, TechDev shared an eight-week chart of the OTHERS index, which tracks the market value of all cryptocurrencies excluding the top ten digital assets and stablecoins.
The chart shows that OTHERS are retesting their exponential moving average (EMA) as support, a pattern similar to the early stages of the bull markets in 2017 and 2020.
According to the chart shared by TechDev, the EMA appears to be around the $20 billion level. Currently, the value of the OTHERS index is approximately $220.577 billion.
#Altcoins
Thought it was over? They did it just like that.
pic.twitter.com/m8uCFT8JDQ
— Technical Development (@TechDev_52)
June 22, 2024
