- Adrian Zduńczyk monitors trading psychology, which can often be observed in charting patterns.
- He says the next localized top-off that investors should be watching will be bitcoin at $70,000.
- Historically, large-cap cryptos trail behind bitcoin’s peak and also see their prices increase.
Adrian Zduńczyk is a crypto technical analyst who’s amassed half a million followers on Twitter under the username crypto_birb. He puts out regular charts and explains the signals that could hint at future price action.
While many crypto investors focus on the fundamentals of a project, Zduńczyk adds another layer to his analysis: trading psychology, which can often be observed in charting patterns.
In a previous interview with Insider, he broke down why he believes bitcoin may top $120,000 by the end of this bull run. But before it reaches that peak, he says the next localized top-off that investors should be watching will be the $70,000 price point.
“Mainly because it works as a self-fulfilling prophecy for the roundup numbers,” Zduńczyk said. “So the rounded numbers in the technical analysis are very special. They often act as support and resistance because people pay a lot of attention to them.”
Bitcoin has already shown its strength after it hit an all-time high on October 20, of more than $67,000. This peak indicates that the market is getting stronger and breaking new resistance lines, he said. It’s also found stability in the $57,000 to $60,000 range.
Technical analysts use support and resistance lines to refer to levels that basically act as barriers because there is enough demand (or supply) to keep prices above (or below) those thresholds. A different kind of investor who focuses on fundamentals may instead cite things like institutional participation and the new bitcoin futures ETFs, among others, as reasons why bitcoin would hit $70,000 and beyond.
Many investors use bitcoin’s price action to determine what comes next for altcoins. Historically, they follow a cyclical trend in which bitcoin peaks, followed by large-cap altcoins and then smaller caps.
Large caps that may trail close behind
One of his favorites is ether, the second-largest in
. Ether has also recently breached its all-time high shortly behind bitcoin, surpassing $4,600 in the first week of November. This means it will likely follow that trail again, he said.
The second altcoin he believes may pump closely behind is litecoin (LTC). This crypto could even do a 10x pump and reach highs anywhere between $1,500 to $2,000 during the bull run.
This is because, unlike ether, litecoin hasn’t yet recovered from its May all-time high of about $410. It’s still more than 50% below that peak, which makes it cheap.
As of Thursday, it was trading near $199, according to CoinMarketCap.
The third crypto that may pump closely behind is chainlink (LINK). From a technical analysis point of view, it’s in a similar place as LTC. It’s a major-cap altcoin that can likely absorb the money that will exit bitcoin after its top-off. However, it too hasn’t yet recovered from its May all-time high of about $52.
On Friday, LINK was trading near $33.40, according to CoinMarketCap.
Additional large-cap cryptos to consider that will likely trail bitcoin include polkadot, solana, cardano, and polygon, he said.