As a seasoned crypto investor with over half a decade of experience navigating the rollercoaster ride that is the cryptocurrency market, I must admit that the recent bullish patterns being displayed by many altcoins have piqued my interest. The inverse head-and-shoulders pattern on the Altcoin Season Index chart between 2022 and 2024, as analyzed by Moustache, is a pattern I’ve seen before, and it usually signals good things to come.
Based on the insights of cryptocurrency traders, several alternative coins appear to be exhibiting bullish tendencies. If these trends continue as projected, we might soon experience a prolonged period of upward price movements, often referred to as a “bull run” or an “upward trending season.
In a recent October 11th post, anonymous analyst Moustache noted that the Altcoin Season Index has been developing an incredibly optimistic pattern over a period of approximately 3.5 years.
The analyst pointed out a specific chart pattern, known as an Inverse Head-and-Shoulders (IH&S), which appeared on the Altcoin Season Index chart of Blockchaincenter from 2022 to 2024.
A reversed head-and-shoulders chart pattern suggests a bullish trend is emerging, implying the current downward movement is lessening, and traders are increasingly favoring buying over selling. This might indicate that the dominance of Bitcoin (BTC) in the market could be decreasing, potentially paving the way for altcoins to exceed Bitcoin’s performance, which may herald the start of an altcoin surge or “altseason.
“Up only season is near, in my opinion,” Moustache added.
Even though the index has been improving, it’s currently at 39, indicating that just 39% of the top 50 cryptocurrencies in terms of market capitalization have surpassed Bitcoin’s performance over the past 90 days, as reported by Blockchaincenter. This number is less than the 75% necessary to confirm an altcoin boom period.
Currently, there’s an interesting development with the Stochastic RSI, a momentum indicator that compares the RSI’s current position within its range over a certain timeframe. On a three-week chart, it has shown a bullish crossover. According to independent analyst Titan of Crypto, this could mean a significant rally for altcoins might be imminent. In simpler terms, the bullish crossover on the Stochastic RSI could suggest that a strong increase in altcoin prices may happen soon.
A bullish crossover takes place when the Stochastic RSI moves above its own indicator line, suggesting a possible upswing in the market.
“Typically, when a bullish crossover forms on the 3-week Stochastic RSI, a powerful move to the upside follows.”
Altcoin total market cap begins to look bullish
The surge in various altcoins is contributing to a resurgence in the overall market value, known as TOTAL3, which encompasses the worth of all cryptocurrencies aside from Bitcoin (BTC) and Ethereum (ETH). This revival started on September 6.
Data from CryptoMoon Markets Pro and TradingView shows that TOTAL2 has increased by 19% from a low of $516.7 billion on Sept. 6 to a high of $617.8 billion on Oct. 7, before retracing to the current value of $601.5 billion. This uptick has seen TOTAL3 rise above a key support zone stretching from $589 billion to $596 billion as shown on the daily chart below.
It’s worth pointing out that these significant moving averages, such as the 50-day Exponential Moving Average (EMA), the 100-day EMA, and the 200-day EMA, are currently located within a specific price range which is considered a demand zone.
On September 30th, traders decided to secure their gains since the Relative Strength Index (RSI), displayed on the daily chart, was approaching an overbought state at 69. This signified that the value of altcoins might have become inflated or excessive.
Alternative cryptocurrencies continue to climb, maintaining positions above their upward trajectory line. Over the past three days, the Relative Strength Index (RSI) has risen from 45 to 53, indicating a market environment that leans towards further upward movement.
As a crypto investor, if TOTAL3 manages to hold its ground above the significant resistance area I’ve previously highlighted, it might pave the way for altcoins to carry on with their upswing. A prolonged recovery in this case could serve as an indicator of the long-awaited altcoin season’s commencement.
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2024-10-13 19:23