Published on oktober 12, 2024, 12:37 am
Image source: Fox News
```json [ "TLDR: Cryptocurrency market showing signs of recovery after a sell-off with potential for upcoming altcoin season. Key metrics, like Altcoin Season Index and stochastic RSI, suggest altcoins may outperform Bitcoin soon. TOTAL3 market cap excluding BTC and ETH is on the rise, indicating optimism for altcoin growth. Traders hopeful for sustained stability to kickstart an 'altseason'.", "Disclaimer: This article does not offer investment advice; readers advised to research before making financial decisions in crypto." ] ```
The cryptocurrency market is currently seeing signs of recovery following a recent significant sell-off. Analysts are pointing to three key metrics indicating a potential upcoming altcoin season. Altcoins are showing bullish patterns that hint at the possibility of an “up-only season” on the horizon.
One notable indicator is the Altcoin Season Index, which has been forming a highly bullish pattern for over 3 years. The formation of an inverse head-and-shoulders (IH&S) chart pattern on this index suggests that the market might be transitioning towards a phase where altcoins could outperform Bitcoin, potentially kickstarting an altcoin season.
Although the index has been making a comeback, it currently sits at 39, indicating that only 39% of the top 50 cryptocurrencies have outperformed Bitcoin over the past 90 days, falling short of the 75% threshold required to confirm an altcoin season.
Furthermore, the stochastic Relative Strength Index (RSI), which measures RSI’s relative position within its range over a specific period, has recently shown a bullish crossover on the three-week chart. This crossover is seen as a positive signal by analysts, hinting that a significant rally in altcoins could be approaching.
The recovery in altcoins is part of a broader uptrend in TOTAL3—the total market capitalization of cryptocurrencies excluding Bitcoin and Ether—that began on September 6th. As TOTAL2 shows an increase from $516.7 billion to $617.8 billion before retracing to $601.5 billion, there is optimism surrounding continued growth in altcoins.
Despite some profit-taking activities when altcoins approached overbought conditions based on relative strength index (RSI), they remain above their ascending trendline, with market conditions favoring further upside movements if TOTAL3 maintains levels above crucial support zones.
Traders remain hopeful that if there’s sustained stability and growth in TOTAL3 and altcoins stay above key resistance levels, it could signify the start of an anticipated altseason.
It’s essential to note that this article does not provide investment advice; readers should conduct their research before making financial decisions in the cryptocurrency market.
Original article posted by Fox News
