YouTuber and analyst Lark Davis released a new video in which he announced he has an altcoin season anticipation for April.
Davis believes there could be a “big” rally for the crypto market this month. The key lies in the dominance of Bitcoin and the performance of Ethereum, according to the analyst.
In this context, Davis stated that ETH has increased by 30% in the last 14 days. In contrast, BTC rose “only” 7% over the same period. Davis came to the following conclusion:
“So, ETH outperforms Bitcoin at a rate of 1 to 2. Twitter’s Altcoin Sherpa put the rate nicely (see below). ”
While explaining the picture, Davis said that Ethereum has made a strong start since 2019, followed by a price correction and a “cooling down”, followed by a rally. As a result, Davis believes the market is now “ready” for a massive bull cycle and ETH is ready to reap significantly higher earnings than Bitcoin.
Speaking of Bitcoin dominance, which is one of the most important metrics for measuring the arrival of the “altcoin season”, Davis said it is “in sharp decline”:
“This indicator represents Bitcoin as a whole, the total share of the market (…). In a critical area, in an important support zone (…). If the support is broken, it will be a crazy season. We must wait for approval. ”
The analyst predicts a rally for Ethereum that could push the price to $ 3,000 if BTC continues to lose its dominance. In addition, cryptocurrencies with large market cap such as Cardano, Litecoin, and XRP could increase by 2 to 5 times.
According to Davis, cryptocurrencies in the top 20 can increase 10 to 20 times. Smaller altcoins can increase 50 to 100 times. The analyst believes “basically all will do that.” According to the analyst, even if Bitcoin’s dominance increases, altcoins can still make a profit, albeit with smaller percentages.
To support his ascension thesis, Davis shared a chart from Rekt Capital that “measures hype cycles in altcoins.” The chart shows market peaks and “waiting times” as the price of Bitcoin is falling and altcoins are rising. By measure, the peak in the bull market could be late this year or early 2022. The analyst added:
“Consider that the total market capitalization of cryptocurrencies is $ 2 trillion, we have a chance to hit $ 10 trillion before reaching the top of the bull cycle.”