Strategist Pentoshi says the crypto market is showing early signs of recovery while forecasting a surge in Ethereum (ETH) and its rival Terra (LUNA).
The analyst says that the ongoing rally on the Bitcoin (BTC) dominance chart is a positive development for the digital asset market.
“The first sign is that the market is healthy because it helps eliminate weak projects. Don’t just look at the tweets, consider the date, time, interactions, and what happened. ”
The Bitcoin Dominance Index measures BTC’s total market cap relative to the rest of the crypto market. Bitcoin’s strong dominance shows that BTC is growing faster than altcoins or other crypto assets that are depreciating faster than BTC.
According to Pentoshi, altcoins are likely to depreciate faster than BTC in the coming months, indicating a shift from excessive speculation to value investing.
“I know a lot of people who don’t believe in BTC.D. Every time it hits the “Sell and Withdraw Line” it affects 100% of the time. See notes on diagram. The market discards the worst projects like a moulting snake to enter a new stage of development.”
At the time of writing, bitcoin dominance is 42.1%, up from the 2022 low of 39.15%.
Looking to Ethereum, Pentoshi predicts a rally for the second largest cryptocurrency before resuming its downtrend.
The source: Pentoshi/Twitter
Regarding Terra, the analyst says that the DeFi payments network will also rise before falling.
“Bid below the green border and sell when it hits the red area. No problem buying some fear… In my opinion, the risk/reward trade-off is more favorable for a short-term recovery but more painful thereafter.”
The source: Pentoshi/Twitter
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