A closely-followed crypto trader is laying out a bullish path ahead for Ethereum and altcoins.
The pseudonymous analyst known in the industry as Capo predicts that ETH’s breakout in its BTC pair will accelerate as Bitcoin’s dominance drops.
Capo notes that the Bitcoin dominance (BTC.D) chart, which is used to track the percentage of the crypto market share that Bitcoin is taking up, may be on the verge of losing a key area of support at 50%.
“Altseason. BTC.D reaching 50% is a key moment.
Break below = altseason continues.
Strong bounce = altseason paused
The point is, this support looks weak now. RSI (relative strength index) is going deep with no divergences and most altcoins look very good against BTC. Mega cycle on altcoins?”
Another key signal the trader utilizes to gauge whether a major altseason is around the bend is the health of the ETH/BTC pair.
“ETH/BTC is going to redefine the concept of parabolic…”
Ethereum is hovering around 0.0517 satoshis against BTC as of writing, according to Trading View.
As the overall crypto market dances with the possibility of an incredibly powerful altseason, Capo updated his followers this week, saying he currently holds 75% of his crypto portfolio in altcoins, 20% in ETH and 5% in BTC.
Blockchain focused public internet solution Syntropy (NOIA) is one altcoin Capo is keeping a close eye on as a potential altseason approaches. The trader recently changed his twitter handle to “il Capo of $NOIA,” presumably as a show of support for the asset.
In March, Capo also listed his “chosen” altcoins that he believes will outperform the market this bull cycle. Those assets are: Binance Coin (BNB), Band Protocol (BAND), Balancer token (BAL), Litentry (LIT), Zilliqa (ZIL), TomoChain (TOMO), and Hedera Hashgraph (HBAR).Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Tithi Luadthong