The cryptocurrency market shows signs of increasing activity. TechDev suggests that a rise in Bitcoin 
$91,081 and altcoins is imminent, drawing parallels to past bullish cycles in 2017 and 2021. Based on technical indicators, the market appears to be entering a similar phase, urging caution among traders as the liquidity cycle begins to expand.
Rising Expectations for Bitcoin Based on Technical Patterns
Bitcoin is poised to break above the upper boundary of its weekly Bollinger Bands. According to TechDev, this breakout could signal a significant change in market dynamics. Previous cycles have shown that similar movements typically herald the start of a bullish trend, suggesting Bitcoin is in a recovery phase, reflecting early stages of a bull market.
In technical analysis, an increase in volatility is observed when Bitcoin reaches its expansion line. TechDev notes that while bullish expectations are rising, investor psychology mirrors past cycles. The analyst advocates for a focus on broader cycles rather than getting misled by short-term narratives that can distort market perspectives.
Altcoins May Rise Faster Than Bitcoin
The altcoin market is witnessing a notable transition where resistance levels are turning into support. TechDev highlights that similar price movements in past cycles led to significant rallies. With Bitcoin entering an expansion phase, altcoins might see faster appreciation, according to the analyst.
Positive changes in the liquidity cycle indicate the market is approaching an expansion phase. As capital flows increase, the market capitalization of altcoins could surge rapidly. The analyst argues that once Bitcoin gains momentum, a period dominated by altcoins could follow.
The dynamics of the market are said to shape alongside investor psychology. As seen in previous cycles, short-term sell-offs may occur when the market enters an expansion phase. Traders are advised to closely monitor market movements and update their risk management strategies accordingly.
