The crypto market is displaying promising signals of recovery after a recent sell-off, and analysts indicate that an altcoin season could be on the brink of emergence based on three pivotal metrics. Many altcoins are showing bullish patterns that may suggest the market is nearing what traders refer to as an "up-only season." 1.
Altcoin Season Index Pseudonymous analyst Moustache has highlighted a bullish formation within the Altcoin Season Index, which tracks the performance of the top 50 altcoins against Bitcoin. On October 11, Moustache revealed an inverse head-and-shoulders (IH&S) pattern observed in the index, a compelling indicator that the current downtrend is diminishing, allowing altcoins the potential to soon outperform Bitcoin.
This formation spans from 2022 to 2024, indicating a possible decline in Bitcoin's dominance, which could pave the way for an altcoin rally. Despite the optimistic outlook, the Altcoin Season Index currently stands at 39. For the market to officially declare an altcoin season, at least 75% of the top 50 altcoins must outperform Bitcoin over a 90-day timeframe. 2.
Stochastic RSI Bullish Crossover Adding to the positive sentiment, the Stochastic RSI, a momentum oscillator that gauges the strength of price movements, is signaling a bullish crossover. According to independent analyst Titan of Crypto, the three-week chart illustrates this crossover, hinting that a significant altcoin rally may be imminent.
When the Stochastic RSI rises above its signal line, it typically suggests a potential upward trend, which has historically been followed by robust movements within the altcoin market. 3. TOTAL3 Market Cap Recovery The TOTAL3 market cap, which tracks the overall value of cryptocurrencies excluding Bitcoin and Ethereum, has shown signs of recovery since September 6.
Recent data indicates that TOTAL3 has surged by 19%, climbing from a low of $516.7 billion to a high of $617.8 billion before stabilizing at approximately $601.5 billion. This rebound has propelled TOTAL3 above a significant support zone, indicating that altcoins may continue to grow in value. Altcoins have maintained an upward trajectory, remaining above an ascending trendline, with the RSI rising from 45 to 53 in recent days.
Should TOTAL3 maintain its position above this crucial resistance zone, altcoins could experience a sustained rally, potentially heralding the long-anticipated altseason. With these metrics aligning, analysts are optimistic that the market is on the verge of a prolonged growth period for altcoins. Nonetheless, the market must retain its current levels to substantiate this bullish forecast..