3 key metrics point to ‘only season’ in altcoins – analysts
According to crypto traders, many altcoins are currently showing some “bullish patterns” which, if they play out as expected, could soon see the market enter a “single season”. ”
“Altcoin Season Index is creating one of the most alarming patterns for 3.5 years,” said anonymous analyst Mustache on October 11 at X.
The analyst was pointing to an inverse Head and Shoulders (IH&S) chart pattern formed on Blockchainenter's Altcoin Season Index chart between 2022 and 2024.
An inverse head and shoulders pattern is a bullish indicator that indicates that the downtrend is easing and that buyers are becoming dominant in the market. This means that the dominance of Bitcoin (BTC) may be waning, and altcoins may start to perform better, signaling the beginning of the altcoin era.
“In my opinion, the season is near,” Mustache added.
Altcoin season index forms IH&S pattern. Source: Beard
While the index has been recovering, it currently stands at 39, meaning only 39% of the top 50 cryptocurrencies by market capitalization have outperformed bitcoin in the past 90 days, according to Blockchaincenter. This is less than the 75% level required to declare an altcoin season.
Meanwhile, the stochastic RSI – a momentum oscillator that measures the relative position of the RSI over a period of time – has formed a high cross on the three-week chart, which independent analyst Titan of Crypto says is a sign. A major #alts rally could be just around the corner.
A bullish crossover occurs when the Stochastic RSI crosses above the signal line, indicating an uptrend.
“Typically, when a bullish crossover occurs on the 3-week Stochastic RSI, it is followed by a strong move to the upside.”
Stochastic RSI forms a bullish cross. Source: Titan of Crypto
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Altcoin's overall market value is starting to look higher
The ongoing recovery in altcoins that began on September 6 is part of the recovery in TOTAL3—the total market value of all cryptocurrencies excluding Bitcoin (BTC) and Ether (ETH).
According to data from Cointelegraph Markets Pro and TradingView, TOTAL2 increased by 19% from a low of $516.7 billion on September 6 to $617.8 billion on October 7, before reversing to its current value of $601.5 billion. This move saw TOTAL3 rise above a key support zone from $589 billion to $596 billion as shown in the daily chart below.
All major moving averages, including the 50-day EMA, 100-day EMA and 200-day EMA, are positioned within this zone of interest.
Traders booked profits when the Relative Strength Index (RSI) on the daily chart reached overbought conditions on September 30 at 69, indicating that altcoins are becoming overvalued.
Total crypto market value excluding BTC. Source: TradingView
Altcoins are still tracking the upside as they remain above the higher trend line. The movement of the RSI from 45 to 53 in the last three days indicates that the market conditions are better.
If TOTAL3 holds above the above-mentioned main resistance zone, altcoins may continue to recover, and a sustained recovery may be a sign of the start of the much-anticipated altseason.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
