October has so far been marked by a decline in the value of many altcoins. Due to political tensions in the Middle East, global cryptocurrency market capitalization has plummeted by 6% over the past ten days.
However, as market sentiment begins to recover and fear subsides, analysts point to early signs that an altcoin season could be on the horizon.
These Analysts Want You to Buy More Altcoins
In an October 11 post on X, pseudonymous analyst Moustache noted that the Altcoin Season Index has formed one of the most bullish patterns in over 3.5 years: the Inverse Head and Shoulders.
This index measures market trends to determine whether altcoins are outperforming Bitcoin. Moustache’s observation suggests that a shift towards altcoins could be underway, as evidenced by the index’s inverse head-and-shoulder pattern. This bullish pattern indicates that the sector’s downtrend is losing momentum, and buyers are gaining control of the market.
The gradual uptick in TOTAL2’s (the combined market capitalization of all altcoins) Relative Strength Index (RSI) supports this outlook. At press time, TOTAL2’s RSI, which measures its overbought and oversold conditions, is in an uptrend at 53.15. This value signals a steady rise in accumulation in the altcoin market.
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Another pseudonymous analyst shares Moustache sentiment. In a recent post on X, Titan of Crypto highlighted that the market’s Stochastic RSI — a momentum oscillator that tracks the relative position of the RSI within its range over a given period — has formed a bullish crossover on the three-week chart.
“Typically, when a bullish crossover forms on the 3-week Stochastic RSI, a powerful move to the upside follows,” Titan of Crypto added.
Altcoin Market Displays Bullishness
The resurgence in the market is evident in TOTAL2’s momentum indicators, assessed on a one-day chart. For example, its Balance of Power (BoP), which measures the strength of buying and selling pressure in the market, is positive at 0.48.
Positive BoP values indicate that buyers (bulls) are in control, suggesting upward momentum. If buying momentum continues, TOTAL2 is poised to break through the $931.50 billion resistance and could rally toward $1.06 trillion.
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
However, if Bitcoin regains dominance and shifts focus away from altcoins, TOTAL2 may decline toward $839.28 billion.
Disclaimer
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