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.
