Crypto Analyst Predicts Bullish Signal for Altcoins After 5-Year Formation
A well-known crypto analyst specializing in chart analysis has recently shared a very bullish signal for altcoins that has been in the making for the past five years. The analyst, who goes by the pseudonym TechDev, took to social media to reveal his findings to his large following of 535,000 followers.
Using a TOTAL3 chart, which tracks the total market cap of all cryptocurrencies excluding Bitcoin (BTC), Ethereum (ETH), and stablecoins, TechDev pointed out a significant breakout pattern. According to his analysis using three-month candles, TOTAL3 is currently breaking out of a massive ascending triangle that began forming in late 2020.
According to TechDev, this breakout is a result of a macro altcoin expansion that has not been seen since late 2020. He also noted that this breakout comes after a four-year coil, which he describes as the longest in history.
The analyst went on to compare the current market behavior to a Livermore Accumulation Cylinder, a pattern identified by renowned trader Jesse Livermore from the early 1900s. Livermore Cylinders typically exhibit price movements within an ascending megaphone pattern, with higher highs and higher lows leading to a final parabolic run outside the upper resistance line.
Additionally, TechDev highlighted the inverse of stablecoin dominance, which he referred to as “stablecoin deployment.” He emphasized that as stablecoins are deployed, it leads to a boost in digital asset prices. However, he pointed out that stablecoin deployment has never truly entered an uptrend, only experiencing temporary consolidations.
According to TechDev, the current market situation indicates that stablecoin deployment is on the rise, signaling a potential breakout unlike any seen before. Previous bull runs have only seen countertrend moves, but this time, it may be the first actual breakout with no precedent.
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