- A prominent trader believes the altcoin market is on the verge of a parabolic breakout.
- His prediction is based on an impending 20-month SMA forming a golden cross on the altcoin market’s monthly chart.
- The analyst claimed such a pattern was rare and signaled the start of a significant bull market each time it occurred.
Amid the bearish trend that rocked the crypto market in the last 24 hours, with digital assets such as BNB taking a major hit , a prominent Bitcoin trader has argued that the overall altcoin market is on the verge of a parabolic breakout.
In a recent tweet, a Bitcoin trader with the X username ‘Moustache’ proclaimed altcoins are now primed for a significant bull run. Moustache’s conviction is rooted in a rare pattern about to form on the altcoin market’s monthly chart.
In particular, the analyst stated that a ‘Golden Cross’ is on the verge of occurring in the monthly chart for the 20-month Simple Moving Average (SMA20) of altcoins. According to Moustache, the expected technical indicator “has only happened twice before in the history of altcoins,” and at both times, it signaled the start of a major bull market.
Notably, a Golden Cross is a technical indicator that occurs when a short-term moving average crosses above a long-term moving average. Traders have often interpreted it as a signal for a bullish trend.
Moustache’s tweet included a chart identifying the two times a golden cross surfaced on altcoin’s SMA20 in 2016 and 2020, with a bullish trajectory following both cycles. Besides, the analyst noted that the relief rallies observed in the crypto market early this month could be a joke compared to the coming days.
Notably, Moustache is one of many analysts who have predicted the impending bullish trajectory in altcoins. Prominent crypto analyst Michaël van de Poppe stated three weeks ago that the current prices of cryptocurrencies provide a favorable entry point for investment. He drew parallels with the economic situation that followed the conclusion of the 2018 bear market as the foundation of his bullish outlook.
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