Rare Altcoin Signal Brewing Since 2020 Foreshadowing Parabolic Expansion, According to Crypto Analyst
A crypto analyst known for his charts says that altcoins are flashing a very bullish signal that’s been five years in the making.
In a post on the social media platform X, pseudonymous analyst TechDev shares with his 535,000 followers a TOTAL3 chart, which measures the entire market cap of crypto assets excluding Bitcoin (BTC), Ethereum (ETH) and stablecoins.
Using three-month candles, TechDev’s analysis suggests that TOTAL3 is currently breaking out of a massive ascending triangle that started forming in late 2020.
“Macro altcoin expansion has triggered.
Not seen since late 2020.
But this one comes after a 4-year coil…the longest in history.”
The analyst believes that the altcoin market is trading in line with what’s known as a Livermore Accumulation Cylinder, a pattern identified by trader Jesse Livermore, a pioneer of day trading prominent in the early 1900s.
Livermore Cylinders typically see price trade within an ascending megaphone pattern, making increasingly higher highs and higher lows before a final parabolic run well outside the upper resistance line of the range.
Says TechDev,
“It’s not complicated.
The entire alt market is in a Livermore cylinder.”
TechDev is also keeping an eye on stablecoins. He shares a chart showing the inverse of stablecoin dominance, or as he describes it, “stablecoin deployment.”
The analyst notes that as stablecoins get deployed, it boosts digital asset prices, but that stablecoin deployment has never truly entered an uptrend, only temporary consolidations.
“Most still don’t get it.
This is stablecoin deployment. When it rises, crypto rises.
But the moves associated with prior bull runs have only been countertrend moves.
This will be the first actual breakout.
It has no precedent.
All prior runs have objectively been test pumps.”
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/GrandeDuc/Fotomay
The post Rare Altcoin Signal Brewing Since 2020 Foreshadowing Parabolic Expansion, According to Crypto Analyst appeared first on The Daily Hodl.