In the field of cryptocurrencies, a recent piece of news about altcoins has caught attention. Analysts have pointed out three key indicators that signal the approaching “only up season” for altcoins.
1. Inverse Head-and-Shoulders Pattern: A Potential Signal of Market Trend Reversal
The Inverse Head-and-Shoulders (IH&S) pattern that has been gradually forming on the Altcoin Season Index has spanned a period of 3.5 years. This pattern is of great significance in technical analysis and is usually an important indication of a market’s transition from a downward trend to an upward trend. Currently, the Altcoin Season Index stands at 39%. For a full-fledged altcoin season to occur, it needs to reach 75%. Once Bitcoin’s dominance weakens, altcoins are expected to experience explosive growth based on this pattern. This pattern implies that the buying power is starting to strengthen, laying the foundation for altcoins to outperform Bitcoin in the future.
2. The Bullish Crossover of the Stochastic Relative Strength Index (RSI)
The bullish crossover of the Stochastic RSI on the three-week chart is an important signal. Historically, when it crosses above the signal line, it indicates that altcoins are about to experience a strong rebound. Although when the RSI on the daily chart approaches overbought levels, there will be a pullback due to traders taking profits, the subsequent rebound shows that the market still favors the continued upward trend of altcoins. This indicator provides strong support for the upward trend of altcoins from a momentum perspective.
3. The TOTAL3 Indicator Shows Market Cap Growth and Potential
The TOTAL3 indicator represents the broader market capitalization of cryptocurrencies excluding Bitcoin and Ether. From the beginning of September to the beginning of October, its market capitalization increased from a low of $516.7 billion to a high of $617.8 billion, with an increase of 19%. Even if there is a pullback, as long as it remains above the key support area, analysts believe that the recovery trend of altcoins will continue and the altcoin season may be just around the corner.
With the emergence of these key indicators, cryptocurrency investors and enthusiasts are closely watching the dynamic changes in the altcoin market. Whether altcoins can truly welcome the “only up season” in the future remains to be seen.
Analysts Point to 3 Key Metrics Signaling ‘Up-Only Season’ for Altcoins