Analysts Point to 3 Key Metrics Signaling ‘Up-Only Season’ for Altcoins

Cryptocurrency traders are pointing to several indicators that suggest a bullish trend for altcoins, potentially signaling the onset of an “up only season.” Analysts have noted that key metrics and chart patterns are aligning to forecast a strong period ahead for altcoins, despite the market currently being dominated by Bitcoin.

Inverse Head-and-Shoulders (IH&S) Pattern

One notable observation comes from pseudonymous analyst Moustache, who highlighted the formation of a bullish pattern on the Altcoin Season Index in a post on October 11. The IH&S pattern, which has been developing over 3.5 years, is widely seen as a signal that the market may be preparing for a significant shift. This pattern indicates that a market’s downtrend is losing momentum, and buyers are starting to gain control.

Altcoin Season Index

The Altcoin Season Index currently stands at 39, meaning that 39% of the top 50 cryptocurrencies by market capita ization have outperformed Bitcoin over the last 90 days. For a full-fledged altcoin season to be declared, this figure needs to rise to 75%.

Stochastic Relative Strength Index (RSI)

Another key metric that analysts are watching is the stochastic RSI. This momentum oscillator has produced a bullish crossover on the three week chart, a signal that independent analyst Titan of Crypto believes could precede a major rally for altcoins. A bullish crossover occurs when the stochastic RSI crosses above its signal line, suggesting an upward trend is likely.

TOTAL3 Market Capitalization

The ongoing recovery in altcoins is also reflected in the broader market capitalization of cryptocurrencies excluding Bitcoin and Ether, referred to as TOTAL3. According to data from TradingView, the market cap for TOTAL3 has increased by 19% from a low of $516.7 billion in early September to a recent high of $617.8 billion in early October. Although there has been a slight pullback, TOTAL3 remains above a key support zone.

If TOTAL3 holds above the major resistance zone, analysts suggest that altcoins could continue their recovery, with the much-anticipated altseason potentially just around the corner.