An analyst known for making macro crypto calls thinks the altcoin market is poised to spark steep rallies similar to the ones witnessed in 2016 and 2021.
Pseudonymous analyst TechDev tells his 451,900 followers on the social media platform X that he’s watching the OTHERS chart, which tracks the total market cap of crypto excluding the 10-largest digital assets and stablecoins.
According to the crypto strategist, OTHERS appears to be following a “textbook” bullish formation after breaking out from a rounding bottom pattern.
“Alts are entering textbook markup.”
Looking at the trader’s chart, OTHERS seems to have printed the exact same pattern seen during the 2016 bull market cycle. The TOTAL3 chart, which tracks the total market cap of crypto excluding Bitcoin (BTC), Ethereum (ETH) and stablecoins, also generated the same pattern in 2021 before launching a big burst to the upside.
Based on the chart, TechDev predicts that OTHERS will rally to as high as $1 trillion during its markup phase. At time of writing, OTHERS is hovering at $291.35 billion, suggesting an upside potential of more than 243% if it hits TechDev’s target.
The analyst is also looking at other relevant charts to support his bullish stance on altcoins. According to TechDev, both the Bitcoin dominance (BTC.D) and Tether dominance (USDT.D) charts are flashing bearish signals.
Bitcoin dominance tracks how much of the crypto market cap belongs to BTC while Tether dominance measures how much of the crypto market cap belongs to USDT. If both charts are bearish, it suggests that traders are moving their capital to altcoins.
“Bitcoin dominance is breaking down from a massive distribution. Tether dominance is marking down in the acceleration phase of its distribution. Alts haven’t expanded from this level of macro compression since Dec 2020. The next narrative is around the corner.”
TechDev says the narrative that could ignite an altcoin surge is the launch of spot market Ethereum exchange-traded funds.
“Cue the next alt narrative right on time. ETH ETF.”
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Featured Image: Shutterstock/Vanessa SG/Natalia Siiatovskaia
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