Analyst and trader Kevin Svenson believes that the most explosive phase of the cycle for altcoins is still to come.
In a new strategy session, Svenson tells his 81,300 YouTube subscribers that based on historic precedence the TOTAL3 chart may soon have an astronomical breakout.
The TOTAL3 chart tracks the market capitalization of all crypto assets excluding Bitcoin (BTC), Ethereum (ETH) and stablecoins.
“[In 2021] Bitcoin got to a really high price and just started chopping. And when it was chopping around, the TOTAL3 went to the moon.”
Svenson predicts that the most explosive season for the alts will start around the 40th week after the halving event in April 2024, when miners’ rewards were cut in half, which would be around the end of January.
“So in this cycle right now the altcoins are currently not even the 40th week post-halving. We haven’t even gotten the all-time high break. In the last cycle, when you broke that high, it was 170% for the TOTAL3 as a whole, 170% up. Maybe it won’t be as much a percent, but still, there’s a major move ahead of us…
The most bullish part of the cycle has not even started yet, hasn’t even begun yet. So we have multiple more weeks to go where Bitcoin could get really, really bullish and continue to be bullish. And the altcoins also will look for a major pump over the next couple of months, in my opinion.”
Looking at his chart, the analyst suggests the TOTAL3 market cap may reach around $2 trillion for the cycle peak, up from the current $982.2 billion.
Svenson also believes that the flagship crypto’s dominance level (BTC.D) will soon start to decline.
The BTC.D is the ratio between the market cap of BTC versus the market cap of all crypto assets combined.
“What you’ll notice in previous cycles is that right after the 40th week – the halving takes place, 40 weeks later – that’s when [Bitcoin] dominance really starts to plummet…
Once we get into this green zone past the 40th week that’s when I think Bitcoin dominance is going to start to take a big tumble, and altcoins are going to take over in dominance.”
Looking at his chart, the analyst suggests that BTC.D may dip to around 42% within six months.
At time of writing, BTC.D is at 58.01%.
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