A widely followed crypto analyst says that the chart of the market cap for most digital assets is flashing a bullish signal against Bitcoin (BTC).
Crypto trader Michaël van de Poppe tells his 723,100 followers on the social media platform X that the TOTAL3 chart appears gearing up for a breakout against the top digital asset by market cap.
The TOTAL3 chart tracks the market capitalization of all crypto assets excluding Bitcoin, Ethereum (ETH) and stablecoins.
“The only chart to watch. TOTAL3/BTC looks absolutely great, with a massive bullish divergence. This indicates that altcoins are on edge for a big breakout.”
Source: Michaël van de Poppe/X
According to the analyst, TOTAL3/BTC is showing bullish divergence on the daily time frame with the Relative Strength Index (RSI), a momentum oscillator indicator. A bullish divergence, which suggests price will start to increase, occurs when the price of assets records lower lows while indicators are witnessing higher lows.
The analyst also believes that digital assets are likely to perform better in the coming months based on historic market trends.
“The final weeks of pain are happening on the markets. From September onwards, it’s again the best period of the cycle for Bitcoin and crypto. BTC valuations are slowly grinding upwards already.”
Lastly, the analyst weighs in on Bitcoin’s latest market correction. He says Bitcoin needs to hold the $56,000 level on the 12-hour chart to remain in an uptrend.
“Bitcoin is still stuck. Positive CPI print, however, U.S. was moving Bitcoin, which usually makes the markets go down for a little. At this point, we’re looking at a case where we’re seeing a consolidation. As long as Bitcoin holds above $56,000-$57,000, everything is fine.”
Source: Michaël van de Poppe/X
Bitcoin is trading for $57,075 at time of writing, down more than 3% in the last 24 hours.
Generated Image: DALLE3
