A popular analyst says that cryptocurrencies could soon go on a parabolic run as a rare technical indicator flashes green for only the third time in history.
The pseudonymous analyst known as TechDev tells his 415,000 Twitter followers that the total crypto market cap is starting to expand in a similar fashion that led to the start of massive bull runs in late 2015 and 2020.
According to TechDev, the total crypto market cap has consolidated for three weeks plus moved over the 20-day moving average (MA). He also points out that BTC’s Bollinger bands, which measure volatility, have compressed into extremely tight ranges, suggesting that a volatile move is near.
“Crypto market cap is beginning to expand with price above 20-day MA, after the tightest three-week compression in history.
Only twice before did it even come close.
Neither was 2019, and both began a major parabolic move.”
The trader notes that some analysts are predicting a strong altcoin market in the aftermath of the historic XRP ruling. He says Bitcoin (BTC) could rally alongside with altcoins while its dominance goes down, similar to 2016.
“I heard some landmark ruling with bullish altcoin implications just happened to come in near a potential major top in Bitcoin dominance.
And yes, Bitcoin can go parabolic at the same time.”
According to the trader, the catalyst for Bitcoin’s bull cycles is not the halving events, which happen every four years, but market liquidity cycles. TechDev depicts global liquidity cycles by pitting the Chinese 10-year bond against the dollar index (DXY), portraying the ebb and flow of dollars into Bitcoin and risk assets.
“Doesn’t look like it’s ever been the halving.
Clever if Satoshi tried to line it up though.
It’s a liquidity cycle world. Bitcoin lives in it.”
Bitcoin is trading for $30,170 at time of writing, down 0.7% during the last 24 hours.
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Generated Image: Midjourney
