A closely followed crypto strategist thinks it’s almost time for altcoins to steal Bitcoin’s (BTC) thunder.
Pseudonymous analyst TechDev tells his 481,600 followers on social media platform X that he looks at historical price action to determine the arrival of a new altseason.
According to the trader, data from the 2017 and 2020 cryptocurrency bull markets suggests a new alt season is underway.
“When is the off-season?
Not sure.
But the last two started after three consecutive weekly closes above the last weekly Bitcoin high…”
Based on the trader’s chart, he seems to suggest that Bitcoin Dominance (BTC.D) took a huge plunge after BTC broke out from previous cycle highs and recovered for three weeks.
The BTC.D index tracks how much of the total crypto market capitalization belongs to Bitcoin. A bearish BTC.D chart suggests altcoins are poised to outperform Bitcoin.
TechDev shares another chart indicating altcoins are about to surpass BTC.
“Another altseason trigger?
When Bitcoin hits this line…’
TechDev seems to think that an altcoin season is now in sight after Bitcoin reached the upper limit of its Bollinger Bands (BB) indicator on the weekly chart. Traders use the Bollinger Bands to discover potential entry and exit points based on historical volatility.
Looking at Bitcoin itself, TechDev believes the crypto king has entered parabolic territory after the Relative Strength Index (RSI) on the two-month chart rose above the 70 level.
The RSI is a momentum indicator where a move above 70 indicates that an asset is in bull territory.
“Welcome back to the Parabolic Zone.”
The trader also thinks that Bitcoin appears to be mirroring the 2017 bull market, when BTC in its M1 money supply pair (BLX/WM1NS) broke the upper limit of the Bollinger Bands and retested as support on the monthly chart.
“There is only one other moment worth comparing this Bitcoin move to.”
The M1 money supply chart tracks all the money sloshing around in the US economy.
At the time of writing, Bitcoin is trading at $98,508.
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Featured image: Shutterstock/svetafelaya/WindAwake
