A popular crypto strategist and trader says the crypto markets are showing early signs of recovery while predicting surges for Ethereum (ETH) its rival Terra (LUNA).
Pseudonymous crypto analyst Pentoshi tells his 500,000 Twitter followers that the ongoing bounce in the Bitcoin (BTC) dominance chart is a positive development for the digital asset market.
“First sign of health in the market because it helps eliminate the weak projects. I seriously can’t believe people can look at these tweets and not believe in it, which you look at dates, time, interactions and what happened.”
The Bitcoin dominance index measures the total market cap of BTC to the rest of the crypto markets. A surging Bitcoin dominance suggests that BTC is either growing faster than altcoins or other crypto assets are losing value faster than BTC.
According to Pentoshi, altcoins will likely lose value faster than BTC in the coming months indicating a flight from excess speculation toward value investing.
“I know many people don’t believe in BTC dom. And those who don’t have lost a lot. Every single time it hits the ‘sell and walk away line’ alts have nuked 100% of the time. See notes on the chart. The market sheds the worst projects like a snake shedding its skin for new growth.”
At time of writing, Bitcoin’s market cap makes up 42.63% of the total crypto market valuation, up from its 2022 low of 39.15%.
Looking at Ethereum, Pentoshi predicts a rally for the second-largest cryptocurrency before resuming its downtrend.
“ETH. This is also developing positively for the first time in two months. I’d say $2,700 and potentially $2,900 on the table for some relief.”
As for Terra, the crypto analyst says that the decentralized finance (DeFi) payment network is also due for a bounce before the next leg down.
“LUNA. Bidding lower green to sell red. Have no problem buying some fear… In my opinion, risk/reward more favorable for a short-term bounce then more doom.”
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Featured Image: Shutterstock/Tithi Luadthong