Crypto traders and analysts are buzzing with anticipation as several altcoins appear to be forming “bullish patterns” that could signal the onset of a long-awaited “up-only season.” This period, often referred to as an altcoin season, occurs when alternative cryptocurrencies (altcoins) outperform Bitcoin in terms of price action. The signals come from a series of technical indicators that traders say may suggest a major move for altcoins in the coming weeks.
Pseudonymous crypto analyst Moustache, who shared his insights on Oct. 11 via X (formerly known as Twitter), pointed out a particularly encouraging development on Blockchaincenter’s Altcoin Season Index. The index has reportedly been shaping an inverse head-and-shoulders (IH&S) pattern—a chart formation widely recognised as a bullish signal. Moustache emphasized that this pattern, which has been forming for the past 3.5 years, could mark the start of a powerful upward trend for altcoins.
An inverse head-and-shoulders pattern is one of the most well-known bullish indicators, signalling a possible reversal of a downtrend and indicating that buyers are becoming more dominant. This particular pattern suggests that the momentum which has been favouring Bitcoin for much of the past few years may be starting to shift towards altcoins. If the trend holds, it could mark the beginning of an altcoin season—a period when altcoins outperform Bitcoin and experience significant gains.
Moustache’s observations come at a time when Bitcoin dominance has been strong, with the leading cryptocurrency maintaining its position at the forefront of the market. Bitcoin, currently trading near $62,574, has held onto its dominance in recent months, but traders are now speculating that this could change soon. According to Moustache, the formation of the inverse head-and-shoulders pattern is a sign that Bitcoin’s dominance may be waning, opening the door for altcoins to take the lead.
“Up-only season is near, in my opinion,” Moustache declared, signaling optimism for altcoin enthusiasts. However, the analyst did note that while the index has been improving, it currently stands at 39. The Altcoin Season Index tracks the performance of the top 50 cryptocurrencies by market capitalization, and for an official “altcoin season” to be declared, 75% of those coins need to outperform Bitcoin over a 90-day period. Currently, only 39% of the top 50 cryptos have managed to do so.
Though the index is not yet in full altcoin season territory, other technical indicators are adding to the positive outlook. One of these is the Stochastic Relative Strength Index (RSI), a momentum oscillator used by traders to measure whether an asset is overbought or oversold relative to its recent price movements. The Stochastic RSI has been showing bullish signs on the three-week chart, according to independent analyst Titan of Crypto.
The Stochastic RSI recently experienced a bullish crossover, which occurs when the oscillator crosses above its signal line, often indicating that an upward trend is on the horizon. Titan of Crypto believes this development could be a strong signal that a major altcoin rally is just around the corner. The analyst highlighted that when this kind of bullish crossover forms on a three-week chart, it is often followed by a powerful move to the upside.
In combination, these technical signals are fuelling growing optimism among crypto traders and analysts that altcoins could be entering a period of strong performance. Bitcoin’s dominance has been a defining feature of the market, but the increasing strength of altcoin charts suggests that this trend may be shifting.
Although the altcoin season index is still below the threshold required for an official altcoin season, the formation of bullish patterns like the inverse head-and-shoulders and the Stochastic RSI crossover indicate that momentum could be building. Crypto traders are closely monitoring these developments, as they could herald a period of sustained growth for altcoins.
It’s important to note that technical patterns and indicators, while useful, are not guarantees of future price action. Markets are influenced by a variety of factors, and while bullish indicators may suggest an impending rally, unexpected events or shifts in sentiment can alter the course of the market. Nonetheless, the formation of these bullish patterns has given traders reason to be cautiously optimistic about the future of altcoins.
As traders await further confirmation of a potential altcoin rally, the next few weeks will be critical. A continuation of the current trends could see altcoins taking centre stage in the crypto market, while any signs of reversal could signal that Bitcoin’s dominance remains intact. For now, the crypto community is watching closely, with hopes that the patterns forming on the charts will lead to the long-anticipated “up-only season” for altcoins.
Should the current trends play out as expected, altcoin enthusiasts could be in for an exciting period of gains, with many popular altcoins poised to outperform Bitcoin in the short to medium term. However, as always in the volatile world of cryptocurrency, nothing is set in stone. Traders will be keeping a close eye on the technical indicators, ready to seize opportunities as they arise.