Key Insights
- Analysts have identified a bullish inverse head-and-shoulders pattern in the Altcoin Season Index, suggesting a possible surge in altcoins.
- Market indicators such as TOTAL 2’s RSI and Stochastic RSI reflect increasing accumulation and strong bullish momentum.
- If sustained buying pressure continues, the altcoin market could breach the $931.50B resistance, with the potential to ascend toward $1.06T.
October’s Altcoin Market: Decline and Recovery
This October has seen a significant drop in the value of many altcoins. Over the past ten days, political tensions in the Middle East have led to a 6% decrease in the global cryptocurrency market capitalization. However, as market sentiment slowly stabilizes and fear begins to wane, analysts are identifying early indicators that an altcoin season may be approaching.
Analysts Urge Altcoin Investment
In an October 11 post on X, pseudonymous analyst Moustache pointed out that the Altcoin Season Index has formed one of its most bullish patterns in over 3.5 years—an inverse head-and-shoulders. This index, which tracks whether altcoins are outperforming Bitcoin, suggests that a shift towards altcoins may be in progress. The inverse head-and-shoulders pattern indicates that the current downtrend in the sector is losing steam, with buyers beginning to regain control of the market.
Supporting this outlook is the gradual rise in the Relative Strength Index (RSI) of TOTAL2, which measures the combined market capitalization of all altcoins. As of now, TOTAL2’s RSI stands at 53.15, signaling a consistent increase in accumulation within the altcoin market.
Another well-known pseudonymous analyst, Titan of Crypto, echoed Moustache’s sentiment. In a recent post on X, he noted that the Stochastic RSI—a momentum oscillator tracking the RSI’s relative position over a given period—has formed a bullish crossover on the three-week chart. This crossover further strengthens the case for a potential altcoin resurgence.
Altcoin Market Signals Bullish Momentum
The market’s resurgence is becoming increasingly clear, as indicated by TOTAL2’s momentum metrics on the one-day chart. Notably, its Balance of Power (BoP)—which gauges the intensity of buying versus selling pressure—stands at a positive 0.48. This reading signals that buyers are currently in control, pointing to a potential upward trend.
If this buying momentum persists, TOTAL2 could breach the $931.50 billion resistance, with a rally towards $1.06 trillion within reach. However, should Bitcoin regain dominance and pull attention away from altcoins, TOTAL2 might face a retracement toward $839.28 billion.
