Crypto enthusiasts have a reason to be excited as a rare historic indicator has flashed green, potentially signaling a parabolic run for cryptocurrencies. Renowned analyst TechDev, with a massive following of 415,000 on Twitter, has reported that the total crypto market cap is displaying signs of expansion similar to what preceded major bull runs in late 2015 and 2020.
According to TechDev, the consolidation of the total crypto market cap for over three weeks, along with its move over the 20-day moving average, suggests that a significant uptrend may be imminent. Furthermore, he highlights the compressed Bollinger bands of Bitcoin (BTC), indicating a period of low volatility and potentially paving the way for a substantial price movement.
Interestingly, the analyst predicts that alongside Bitcoin, altcoins may witness a strong market performance as well. He draws parallels to the altcoin market’s surge in 2016, wherein Bitcoin’s dominance decreased as altcoins rallied. This, in turn, could lead to a thriving altcoin market in the aftermath of this historic indicator.
Contrary to popular belief, TechDev argues that the catalyst for Bitcoin’s bull cycles is not solely the halving events that occur every four years but rather the cycles of market liquidity. To depict global liquidity cycles, the analyst compares the Chinese 10-year bond against the dollar index (DXY) and illustrates the flow of funds into Bitcoin and other risk assets.
While the current price of Bitcoin stands at $30,170, experiencing a marginal decline of 0.7% within the last 24 hours, the possibility of a parabolic run in the cryptocurrency market can bring renewed optimism among investors. Considering the previous instances when this rare historic indicator flashed green, it becomes evident why many are closely monitoring the market for a potential surge.
Overall, TechDev’s analysis provides hope for crypto enthusiasts who have been eagerly anticipating a significant upward movement. As the total crypto market cap expands and technical indicators align with patterns seen during previous bull runs, it seems plausible that the cryptocurrency market is on the verge of another parabolic journey, potentially offering substantial gains for investors. However, as with any investment, it is essential to approach the market with caution and conduct thorough research before making any financial decisions.