Altcoin Market Poised for 2020-Style Expansion Says TechDev

A prominent crypto analyst, known for his detailed chart analysis, has identified a significant bullish signal for altcoins that has been developing since late 2020. The analyst, who goes by the pseudonym TechDev, shared his insights on the social media platform X, highlighting a TOTAL3 chart that measures the market capitalization of all crypto assets excluding Bitcoin (BTC), Ethereum (ETH), and stablecoins. According to TechDev, the TOTAL3 chart is currently breaking out of a massive ascending triangle pattern that began forming in late 2020. This breakout, he suggests, indicates a macro altcoin expansion that has not been seen since the end of 2020.

TechDev's analysis is based on three-month candles, which show that the altcoin market is trading within what is known as a Livermore Accumulation Cylinder. This pattern, identified by trader Jesse Livermore, involves price trading within an ascending megaphone pattern, making increasingly higher highs and higher lows before a final parabolic run well outside the upper resistance line of the range. TechDev believes that the entire altcoin market is currently in this Livermore cylinder pattern, suggesting a significant upward movement in the near future.

In addition to his analysis of the altcoin market, TechDev is also monitoring stablecoins. He shared a chart showing the inverse of stablecoin dominance, which he refers to as "stablecoin deployment." According to TechDev, as stablecoins are deployed, it boosts digital asset prices. However, he notes that stablecoin deployment has never truly entered an uptrend, only temporary consolidations. TechDev suggests that the current stablecoin deployment is different from previous bull runs, as it represents the first actual breakout with no precedent. He believes that all prior runs have been countertrend moves or test pumps, and that the current deployment could lead to a significant increase in crypto prices.

TechDev's analysis provides a bullish outlook for the altcoin market, suggesting that a parabolic expansion is on the horizon. His insights are based on historical patterns and current market trends, and he believes that the altcoin market is poised for significant growth in the near future. The analyst's observations highlight a potential shift in the altcoin market dynamics, which could have substantial implications for investors and traders alike. The breakout from the ascending triangle pattern and the Livermore Accumulation Cylinder suggest that the altcoin market is entering a phase of accelerated growth, which could lead to significant gains for those invested in these digital assets. TechDev's focus on stablecoin deployment adds another layer to his analysis, indicating that the broader crypto market may be on the cusp of a major bull run. As stablecoins are increasingly deployed, they could act as a catalyst for higher digital asset prices, further fueling the altcoin market's expansion. Overall, TechDev's insights offer a compelling case for the potential parabolic growth of altcoins, backed by historical patterns and current market trends. Investors and traders should closely monitor these developments and consider the implications for their portfolios.