Altcoins are currently in a “textbook markup” period, similar to what was seen in the 2016 and 2021 market cycles, according to an analyst. The pseudonymous analyst, known as TechDev, is observing the OTHERS chart, which tracks the total market cap of cryptocurrencies excluding the top 10 digital assets and stablecoins. TechDev believes that OTHERS is following a bullish formation after breaking out from a rounding bottom pattern. The analyst suggests that altcoins could experience significant rallies during this markup period.
Looking at the chart, TechDev notes that OTHERS is exhibiting a pattern similar to the one witnessed during the 2016 bull market cycle. The TOTAL3 chart, which excludes Bitcoin, Ethereum, and stablecoins, also displayed a similar pattern in 2021 before experiencing a substantial surge. Based on this analysis, TechDev predicts that OTHERS could rally to $1 trillion during its markup phase. Currently, OTHERS is valued at $291.35 billion, indicating a potential upside of over 243% if it reaches TechDev’s target.
In addition to the chart analysis, TechDev points to bearish signals on the Bitcoin dominance (BTC.D) and Tether dominance (USDT.D) charts. These charts measure the portion of the crypto market cap occupied by BTC and USDT, respectively. A bearish signal suggests that traders are shifting their investments towards altcoins.
TechDev believes that the launch of Ethereum exchange-traded funds (ETFs) in the spot market could spark the next narrative that drives the surge in altcoins. The analyst states that this could be the catalyst for the next wave of altcoin growth.
It is worth noting that all market predictions and analyses come with inherent uncertainties, and investors should conduct their research before making any financial decisions.