According to Dan Gambardello, a cryptocurrency analyst, the crypto market is entering a critical phase. Citing six and a half years of technical analysis data volume, Gambardello contends that the crypto market will experience significant volatility within the next two months.
As far as crypto cycles go, we’re entering a critical time for me personally.
Altcoins should soon be getting ready to make their move and BTC dominance should begin falling, in between now & August.
Around 6.5 years of technical analysis & studying cycles comes down to this! pic.twitter.com/vZeFkRA4dW
— Dan Gambardello (@cryptorecruitr) May 27, 2024
Gambardello predicts an imminent altcoin season is set to kick off soon while he foresees an upcoming drop in Bitcoin’s dominance. The analyst elaborated on his prediction using a graphical image of the Bitcoin dominance trend from 2017 to date. For context, Bitcoin dominance typically trends in the opposite direction to the altcoin market, especially during significant market volatility.
The analyst’s presentation illustrates how Bitcoin’s dominance declined during the altcoin seasons of the 2017 and 2021 bull run. The chart further provided details of a repetitive pattern where Bitcoin’s dominance moved in a cyclic trend of rallying ahead of a drop. In addition, Gambardello presented a pair of moving average indicators whose crossover points consistently signaled the decline in Bitcoin dominance.
Notably, Gambardello’s chart presentation shows the pair of moving averages are about to cross over. It also shows that Bitcoin’s dominance is nearing a peak, considering how the metric is losing momentum. Hence, the analyst foresees a potential drop that would imply a transfer of investment from Bitcoin to altcoins or a concentration of capital influx into the altcoin market.
It is worth noting that the crypto market’s historical behavior supports Gambardello’s prediction. Typically, Bitcoin rallies to new highs to signal the beginning of a bull cycle. A season of accumulation follows Bitcoin’s initial rally, after which a resurgence would attract more capital, triggering parabolic rallies among several altcoins.
However, crypto users understand the emotional side of how the market develops. Retail investors often sit out the initial rallies for fear of the unknown in a phenomenon described as Fear, Uncertainty, and Doubt (FUD). What follows is the Fear Of Missing Out (FOMO), where investors flood the crypto market, leading to exceptional rallies and high volatility.
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