Analyst and trader Kevin Svenson believes that the most explosive phase of the altcoin cycle is yet to come.
In a new strategy session, Svenson tells his 81,300 YouTube subscribers that, based on historical precedence, the TOTAL3 rankings could soon experience an astronomical breakthrough.
The TOTAL3 chart tracks the market capitalization of all crypto assets, excluding Bitcoin (BTC), Ethereum (ETH), and stablecoins.
“(In 2021) Bitcoin reached a very high price and just started to chop. And while it was filming, the TOTAL3 went to the moon.
Svenson predicts that the most explosive season for alts will begin around week 40 after the halving event in April 2024, when miner rewards have been halved, or around the end of January.
“So in this current cycle, altcoins are not even at the 40th week post-halving. We haven’t even reached the all-time record. Last cycle, when you broke that high, it was 170% for TOTAL3 as a whole, up 170%. It might not be as much as one percent, but there’s still a big step to take…
The most bullish part of the cycle hasn’t even started yet, hasn’t even started yet. So we still have several weeks left where Bitcoin could get really, really bullish and continue to be so. And altcoins will also look for a major push over the next few months, in my opinion.
Looking at his chart, the analyst suggests that TOTAL3’s market cap could reach around $2 trillion for the peak of the cycle, up from $982.2 billion currently.
Svenson also believes that the dominance level of the flagship crypto (BTC.D) will soon begin to decline.
BTC.D is the ratio of the market capitalization of BTC to the market capitalization of all crypto assets combined.
“What you’ll notice in previous cycles is that right after the 40th week – the halving happens, 40 weeks later – that’s when (Bitcoin’s) dominance really begins to collapse…
Once we enter this green zone after week 40, I think Bitcoin’s dominance will start to fall, and altcoins will take over.
Looking at his chart, the analyst suggests that BTC.D could fall to around 42% within six months.
At the time of writing, BTC.D is at 58.01%.
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