- Top analyst says the capital rotation from Bitcoin to altcoins is already underway
- On-chain proof includes a whale selling 4,000 BTC to buy 96,000 ETH, a massive rotation into Ethereum
- The key technical signal to watch is a bounce off the 20 and 50-day moving averages for altcoins
A cryptocurrency analyst has reiterated his position on the prevailing market trend and dynamics.
In his latest podcast, the analyst insisted that a capital rotation from Bitcoin into altcoins has begun. He used key technical indicators and the trading activities of long-term crypto traders to highlight what he believes to be a typical behavior of the crypto market during bull cycles.
Altcoin consolidation will precede the altseason
Although the analyst is adamant about the capital rotation in the crypto market, he noted that the bull move has yet to begin. According to him, the high rate of adoption remains crucial for the development of the crypto market.
Related: Altcoin Market Prepares for Massive Inflow Amid Capital Rotation and Stablecoin Accumulation
For instance, crypto is still being adopted at twice the speed on the internet, from 5 million IP addresses vs 5 million wallets, which would take the ecosystem from its current $4 trillion market cap to $100 trillion by 2032-2034.
The “Consolidation Before the Storm”
In the meantime, the analyst noted that the crypto market has entered a consolidation phase that will precede an altcoin season. However, he cited a particular trend that will confirm the next altcoin market rally.
According to the analyst, a bounce off the 20 and 50-day moving average area, as opposed to a complete pullback to the 200-day moving average, will signal the beginning of the next phase of the altcoin season.
The RSI is aligning, alongside whales’ behavior
Meanwhile, the analyst identifies the RSI as a crucial indicator for the current altcoin market dispensation. He highlighted the indicator’s trend in the recent past, citing how it is aligning with the altcoin market’s trend while signaling a consolidation.
The analyst claimed to be monitoring the RSI indicator’s development for the next altcoin market signal.
Related: ETH/BTC Holds Key Support; Breakout Could Spark Capital Rotation to Altcoins
Besides the technical indicators, the analyst spotted an ongoing trend among crypto whales, with a particular investor selling a significant amount of Bitcoin to buy Ethereum tokens. On August 31, the investor sold 4,000 Bitcoins and bought about 96,000 Ethereum. In total, the investor has bought 837,429 Ethereum, equivalent to $3.85 billion in the current dispensation.
According to the analyst, such a move highlights the ongoing capital rotation, alongside the actions of retail investors who believe an altcoin season is about to begin.
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Source: https://coinedition.com/altcoin-season-capital-rotation-has-already-begun-proof/
