Why Altcoin Season Might Be Closer Than You Think
Analysts see signs of an altcoin season, with the Altcoin Season Index showing a bullish pattern and TOTAL2's RSI rising, suggesting altcoins may soon outperform Bitcoin.
October has started with a decline in the value of many altcoins, largely influenced by political tensions in the Middle East, which have caused global cryptocurrency market capitalization to drop by 6% over the past ten days. However, as market sentiment begins to recover and fears subside, analysts are identifying early signs that an altcoin season may be on the horizon.
Analysts Suggest Increasing Altcoin Investments
On October 11, pseudonymous analyst Moustache pointed out on X that the Altcoin Season Index has formed a bullish pattern known as the Inverse Head and Shoulders, marking one of the most promising signals in over 3.5 years. This index gauges market trends to assess whether altcoins are outperforming Bitcoin. Moustache’s observation indicates that a shift toward altcoins could be underway, as the inverse head-and-shoulder pattern suggests a weakening downtrend and growing buyer control.
Supporting this outlook is the gradual increase in TOTAL2’s Relative Strength Index (RSI), which tracks overbought and oversold conditions in the altcoin market. As of now, TOTAL2’s RSI is on an upward trend at 53.15, indicating a steady rise in accumulation.
Another analyst, Titan of Crypto, echoed Moustache's sentiment, noting a bullish crossover in the market's Stochastic RSI on the three-week chart. “Typically, when a bullish crossover forms on the 3-week Stochastic RSI, a powerful move to the upside follows,” he stated.
The positive trend is further reflected in TOTAL2’s momentum indicators. For example, its Balance of Power (BoP), which measures buying and selling pressure, stands at a positive 0.48, indicating that buyers are currently in control. If this buying momentum persists, TOTAL2 could break through the $931.50 billion resistance and potentially rally toward $1.06 trillion.
However, should Bitcoin regain dominance and shift focus away from altcoins, TOTAL2 might decline toward $839.28 billion.
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