A popular analyst says cryptocurrencies could soon start parabolic as a rare technical indicator flashes green for the third time in history.
The pseudonymous analyst known as TechDev tells are 415,000 Twitter followers that the total crypto market cap has begun to expand in a similar manner, leading to the onset of massive bull runs in late 2015 and 2020.
According to TechDev, the total crypto market cap has been consolidated for three weeks and has crossed the 20-day moving average (MA). He also points out that BTC’s Bollinger bands, which measure volatility, have compressed to extremely tight margins, suggesting volatile movement is imminent.
“Crypto market cap is starting to expand with price above the 20-day MA, following the tightest three-week compression in history.
Only twice before did it even come close.
Neither was 2019, and both started a major parabolic move.
The trader notes that some analysts are predicting a strong altcoin market in the wake of the landmark XRP ruling. He says Bitcoin (BTC) could rise along with altcoins as its dominance wanes, similar to 2016.
“I heard that a landmark statement with bullish altcoin implications happened to be close to a potential major peak in Bitcoin dominance.
And yes, Bitcoin can go parabolic at the same time.”
According to the trader, the catalyst Bitcoin’s bull cycles are not the halving events, which occur every four years, but the market liquidity cycles. TechDev depicts global liquidity cycles by plotting China’s 10-year bond against the dollar index (DXY), showing the ebb and flow of dollars in Bitcoin and risk assets.
“It doesn’t look like it’s ever been the halving.
It’s smart if Satoshi tried to sort it out.
It’s a liquidity cycle world. Bitcoin lives in it.”
Bitcoin is trading at $30,170 at the time of writing, down 0.7% over the past 24 hours.
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Image generated: Midway through the journey
