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A popular cryptocurrency analyst has suggested that cryptocurrencies could soon enter a parabolic run due to the rare occurrence of a technical indicator flashing for only the third time in history.
Cryptocurrency Market Value
The expert analyst, known as TechDev, stated on Twitter that the total cryptocurrency market is starting to expand in a similar way to the end of 2015 and 2020, which led to major bull runs.
According to senior analyst TechDev, the total market value of cryptocurrencies consolidated for three weeks and crossed above the 20-day moving average (MA). He also points out that Bitcoin‘s volatility-measuring Bollinger Bands are squeezed into extremely tight ranges, which could indicate an imminent volatile move. In his statement, the expert said:
The cryptocurrency market value is starting to expand with the price above the 20-day MA after the tightest three-week consolidation in history. It has only come close twice before. Not in 2019, and both times it initiated a major parabolic move.
“Parabolic Movement in Bitcoin!”
The expert suggests that some analysts predict a strong altcoin market following the historic decision on XRP. He also said that Bitcoin’s dominance could decrease similar to 2016, allowing it to recover alongside altcoins. TechDev stated:
I heard that some pivotal decisions with effects on the rise of altcoins, which are approaching a potential major peak in Bitcoin dominance, have come by chance. And yes, Bitcoin can become parabolic at the same time.
According to the analyst, the catalyst for Bitcoin’s bull cycles is not the halving events that occur every four years but market liquidity cycles. TechDev depicts global liquidity cycles by contrasting China’s 10-year bond with the dollar index (DXY) and showing the flow of the dollar into Bitcoin and risky assets. In the analyst’s final statement, he said:
It seems like there has never been a halving. Yet, if Satoshi tries to align, it would be clever. It’s a world of liquidity cycles. Bitcoin lives within it.
