‘Altcoin Season’ is Coming, Technical Analysis Suggests

The technical analysis performed by crypto trader and former researcher at Valkyrie Investments, Josh Olszewicz, indicates that in the combined market capitalization of altcoins, a bullish inverse head-and-shoulders (H&S) price pattern may have formed. Altcoins refer to cryptocurrencies other than bitcoin and such a pattern would signal an impending ”alt season” – a crypto slang for a period of altcoin outperformance encumbering market juggernauts of BTC and ether ( ETH).

TradingView data discloses evidence in support of an inverted H&S pattern, seen wherein June 2022 spawned the left shoulder’s technical bottom at the market cap of $188.4 billion. In December, it further generated a trough (head) located at the market cap low of $173.23 billion, which was then succeeded by the right shoulder, standing solid at $ 177.36 billion, sprouting in June this year. Consequently, submission to the hovering resistance near $300 billion per market cap, not observed in the preceding three weeks’ pricings, will confirm the pattern’s potential illegitimization.

Olszewicz, reporting on the pattern states that despite the triple bottom – or the ascending train of events arguably necessitating the inverted H&S pattern –, the said pattern stands insecure waiting for the breakout above $300 billion. Furthermore, invalidation is to be anticipated at declines beneath $300 billion, opposite of the assumed altcoin relief impending.

Robert Wilson author
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