Cryptocurrency analyst and trader Jason Pizzino is offering his opinion on the likely trajectory of altcoins over the coming months.
Pizzino tells his 332,000 YouTube subscribers that he is expecting an “altcoin bounce” in this year’s fourth quarter during or after the November 5th US presidential election.
Pizzino says the percentage of Tether (USDT) stablecoin’s market cap relative to other cryptocurrencies may have topped out and is likely to fall even further, indicating that market participants are using their stablecoins to accumulate crypto assets.
He shares an inverse chart of USDT Dominance (USDT.D) and appears to predict that it will lose more market share in the coming months.
“This is the USDT dominance chart but it’s inverse. If you’re interested in your technical analysis which direction do you think this should be going in next? Do you think we’re going to see a breakout of these tops as it has potentially hit some support and you’d start to see a breakout here?
If that’s the case, you can see that it’s inverse which would mean the USDT dominance would actually drop… which means where does that money go? It either gets pulled out of the market entirely into profits and the whole thing’s over or it’s going back into Bitcoin and cryptocurrencies… which leads to the altcoin bounce.”
Looking at the trader’s chart, he seems to predict that the market share of USDT will drop to about 1%. At time of writing, USDT.D is hovering at 5.80%.
Turning to Ethereum (ETH), Pizzino says that the second-largest crypto asset by market cap is “looking okay” after overcoming a major resistance level.
Over the longer term, Pizzino says,
“The longer-term still definitely needs a close above $2,900. So for the strength, if you’re a little bit less inclined to take the riskier trade, the $2,900 level is the safer place.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Generated Image: DALLE3