Analyst Anticipates Cryptocurrencies’ Parabolic Surge as Rare Indicator Flashes Green Again
Renowned cryptocurrency analyst TechDev, followed by a substantial base of 415,000 Twitter users, recently shared an intriguing prediction: cryptocurrencies might be on the brink of a remarkable parabolic rally. The catalyst behind this projection is a rare technical indicator, which has only signaled a bullish trend three times in history.
TechDev highlights the similarity between the current market conditions and the beginnings of massive bull runs in late 2015 and 2020. The total cryptocurrency market cap has shown signs of expansion, having consolidated for three consecutive weeks and surpassed the 20-day moving average (MA). Additionally, TechDev draws attention to Bitcoin’s Bollinger bands, used to gauge volatility, which have tightened significantly, indicating an imminent volatile move.
“Observing the crypto market cap, we can witness its expansion above the 20-day MA after an unprecedented three-week period of consolidation. Such tight compression has occurred only twice before, and both instances heralded a significant parabolic surge, excluding 2019,” says TechDev confidently.
Furthermore, the analyst notes that some experts predict a flourishing altcoin market following a groundbreaking ruling related to XRP. TechDev suggests that Bitcoin (BTC) might experience a rally in tandem with altcoins while its dominance diminishes, much like the market dynamics observed in 2016.
“It appears that there’s been a pivotal ruling with positive implications for altcoins, coinciding with a potential major peak in Bitcoin dominance. Notably, Bitcoin can undergo its own parabolic ascent during this period,” states TechDev.
In contrast to popular belief that Bitcoin’s halving events trigger bull cycles, TechDev argues that it is the liquidity cycles within the market that serve as the real driving force. To illustrate this concept, the analyst juxtaposes the Chinese 10-year bond against the dollar index (DXY), portraying the ebb and flow of dollars into Bitcoin and other risk assets.
“Contrary to expectations, it seems that Bitcoin’s halving events may not be the primary cause of its bull cycles. Instead, it is the liquidity cycles that dominate this realm. Clever if Satoshi Nakamoto had intended to align it accordingly. Bitcoin thrives within the realm of liquidity cycles,” explains TechDev.
As the crypto market eagerly awaits the outcome, TechDev’s insights provide a thought-provoking perspective on the potential for a parabolic surge in cryptocurrencies, driven by rare technical indicators and evolving market dynamics.
