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Bitcoin: Biggest Crash in 4 Years Ahead According to Analyst

Bitcoin: Biggest Crash in 4 Years Ahead According to Analyst

Cryptodnes2024/06/24 16:10
By:Cryptodnes

An analyst known on X (Twitter) as TechDev claims that the Bitcoin (BTC) dominance chart is signaling a major bearish reversal.

The Bitcoin Dominance Index (BTC.D) measures the market capitalization of the largest cryptocurrency relative to the capitalization of the rest of the crypto market. The bearish trend seen in BTC.D suggests that the altcoins prepare to surpass Bitcoin .

Bitcoin: Biggest Crash in 4 Years Ahead According to Analyst image 0

TechDev hard , that the BTC.D chart is showing a bearish divergence on the five-day timeframe, indicating that Bitcoin's dominance is waning in favor of altcoins:

The five-day bearish divergence building Bitcoin's dominance suggests the asset is poised for its biggest drop in four years. To those new to the field – welcome to the bottom of the second altcoin wave… People often wonder if there will be an altcoin season. Just wait until the third wave.

READ MORE:
Bitcoin Continues Losses: What Should We Watch This Week?

The analyst uses Elliott wave theory, which states that a bullish asset typically follows a five-wave pattern, with waves one, three, and five being bullish moves, while waves two and four are corrections. According to the theory, the third wave is usually the longest and most significant during the rally.

To support its bullish forecast for altcoins, TechDev shared an eight-week chart of the OTHERS index, which tracks the market capitalization of all cryptocurrencies except for the top ten digital assets and stablecoins.

The chart shows OTHERS retesting its exponential moving average (EMA) as support, a pattern similar to those seen in the early stages of the 2017 and 2020 bull markets.

#Altcoins

Think it's over? So they did. pic.twitter.com/m8uCFT8JDQ

— TechDev (@TechDev_52) June 22, 2024

Based on the chart shared by TechDev, the EMA appears to be at around the $200 billion level. Currently, the OTHERS index is worth approximately $220.577 billion.

Bitcoin: Biggest Crash in 4 Years Ahead According to Analyst image 1

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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