The volatility in the cryptocurrency market persists following last night’s price fluctuations. Bitcoin experienced a drop of approximately $2,000 but later rebounded to reach the $68,400 level. As these events continue to unfold, the comments from analysts are becoming increasingly crucial.
Prediction of a Bull Market by an Analyst
A well-known crypto analyst has shared insights on a new process that could lead to a market surge. By analyzing technical indicators, this analyst suggests that altcoins are on the verge of experiencing a parabolic rise. Stay updated with the latest financial and business news on COINTURK FINANCE.
The analyst, known as TechDev, made significant statements to his large following on the social media platform X. He highlighted that key technical indicators in the market are mirroring the pattern observed in 2020, which triggered a major bull run in the crypto market.
Overview of the Cryptocurrency Market
The analyst examined a bi-monthly chart that displays the total market value of cryptocurrencies. It was observed that cryptocurrencies are progressively gearing up for a significant breakout. Bollinger Bands (BB) were utilized in the chart, which typically narrow at the upper and lower bands during periods of low volatility, indicating the potential for price volatility.
The chart reveals that the mentioned indicator has narrowed to similar levels as seen before substantial upward price movements in 2020, followed by even larger expansions in 2021.
In addition to other indicators that suggest a market shift, the analyst pointed out the Gauss channel in the bi-weekly Ethereum (ETH) indicator. This indicates that the leading altcoin is likely in a bull cycle. Gauss channels are momentum indicators that can identify price turning points.
The analyst also observed that Bollinger Bands have initiated an upward movement in the bi-monthly OTHERS chart, which tracks the total market value of cryptocurrencies excluding the top 10 crypto assets and stablecoins. According to the analyst, this could potentially trigger bullish rallies similar to those witnessed in 2016 and 2021.
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Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.
