A popular analyst and trader says he is closely watching a crypto index that he believes will signal the start of the next altcoin season.
The pseudonymous trader, known in the industry as Credible Crypto, tells his 223,100 Twitter followers that the Bitcoin Dominance Index (BTC DOM) is poised for a relief rally, which might offer good opportunities for altcoin traders.
“During our last bull run, there were multiple instances where BTC Dom spiked for some relief on its way down.
I still fully expect new [all-time lows] on BTC Dom before this bull run is over. Eyes on alts if/when BTC Dom hits 50-55%. That will probs be the BEST time to load up on alts.”
Traders rely on the Bitcoin Dominance Index to get a sense of Bitcoin’s value relative to the value of the broader cryptocurrency market. A rising BTC DOM is an easy way to see when Bitcoin’s value is growing faster than the rest of the crypto markets, and vice versa.
Credible Crypto says that the BTC DOM relief rally could mark the bottom for altcoins and the start of a new altcoin season, as he expects the index to continue its downtrend.
In line with his prediction, the crypto trader adds that he expects altcoins to rally in the midterm before pulling off one final surge in the next six months. Between the two rallies, Credible Crypto says that he sees altcoins trading within a wide range.
“Probs a sideways consolidation. But since these are alts, that could be a decent 20-40% range from the highs even.”
As for Bitcoin, the crypto strategist believes that the largest cryptocurrency is gearing up for the next phase of its bull market.
“Accumulation. BTC.”
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The post One Metric Will Confirm Start of Next Altcoin Season, According to Prominent Analyst appeared first on The Daily Hodl.
source https://dailyhodl.com/2021/07/12/one-metric-will-confirm-start-of-next-altcoin-season-according-to-prominent-analyst/