Almost every prominent figure in Crypto Twitter has been calling for an alt season over the last few weeks. However, bitcoin’s continued strength has left many crypto tokens bleeding in value against the No. 1 cryptocurrency. Alt season has been canceled time and time again. Those who are waiting for it appear to be waiting in vain. Or, are they?
A well-respected figure in Crypto Twitter offers technical evidence that altcoins appear to be due for a massive rally. The trader expects the total market cap to grow by 50 percent in the coming months.
A pseudonymous account that goes by the name The Crypto Dog recently took to Twitter to reveal his thoughts on the current state of altcoins. The analyst shared to more than 150,000 followers a chart. It shows how the total altcoin market cap is painting an ascending broadening wedge on the daily chart.
The tweet came with the caveat that the ascending broadening wedge is “certainly not a guaranteed bullish signal.”
However, the trader also noted:
“[The] last time we saw one of these in crypto, there was a pop.”
Before we go to the second part of the tweet, we should mention that The Crypto Dog also provided a tip on how to trade the pattern. According to the tip, traders should buy after the price touches the bottom of the diagonal support for the third time. Looking at the chart, the price has already bounced after touching the bottom for the third time. This is an encouraging development for altcoin bag holders.
The second half of the thread revealed the last chart in the cryptocurrency world that painted an ascending broadening wedge. It was none other than bitcoin.
As you can see, bitcoin ignited a massive rally after breaking out of the bullish pattern. While the analyst is understandably being cautious, the reference to bitcoin’s recent price action suggests that altcoins, in general, will likely take the same direction.
Further analysis regarding the direction of the total altcoin market cap supports The Crypto Dog’s findings.
A look at the daily shows that the index is printing strong buy signals. First, bulls have managed to convert the diagonal resistance into support. They are now using this trendline to drive the value of the overall market up.
Second, the rise in value comes with a significant increase in volume. This is another bullish signal indicating that market participants are heavily buying at current levels. Lastly, we can see the daily RSI generate multiple higher lows. This tells us that bulls continue to control momentum throughout this ascent.
With these signals, the total altcoin market cap could go as high as $180 billion as suggested by The Crypto Dog.
The Crypto Dog has spotted a bullish pattern that can potentially take the valuation of the total altcoin market cap from $120 billion to $180 billion. While the analyst was trying to play it safe, the reference to bitcoin’s recent parabolic rise tells us that the pseudonymous account is anticipating a major rally.
If you’re one of those praying for an alt season, it appears that your prayers could be answered soon.
Last modified: July 9, 2019 17:01 UTC