Cryptocurrencies have been stealing the limelight in the financial world, particularly Bitcoin, and its not-so-popular but just as intriguing siblings, the Altcoins. Here we dive into a comprehensive exploration of the significant upswing, dubbed the 'Altcoin Season' of 2023, as indicated by an array of technical analyses.
The Anatomy of Altcoins
Tagged as 'alternative coins,' altcoins are virtual currencies that strive to offer improved, modified, or innovative versions of Bitcoin. The booming world of altcoins includes notable names like Ethereum, Litecoin, Cardano, and a plethora of others. As we stand in the second half of 2023, a potent shift suggested by technical charts signals that the altcoin market might be preparing for a startling upswing.
The Inverse Head-and-Shoulders Pattern
The Telltale Sign of the Bulls
A classic bullish indicator, the inverse head and shoulders pattern, has been observed in the combined market capitalization of altcoins, according to crypto trader and former researcher at Valkyrie Investments, Josh Olszewicz. This pattern forms when an asset presents three price valleys, with the middle one being the lowest. A breakout and a change in trend from bearish to bullish is validated once the prices surpass the trendline, known as the neckline, connecting the troughs.
Crunching the Numbers
The left shoulder bottom emerged at $188.4 billion in June 2022, followed by the head low at $173.23 billion in December that year. The right shoulder was formed most recently in June 2023 at $177.36 billion. At present, the market cap has been consolidating around $230 billion. However, the potential completion of the pattern becomes possible if the market cap breaches the neckline resistance at $300 billion.
Altcoin Season on the Horizon
The Altcoin Breakout
The altcoin market's rally past the $300 billion mark potentially signals the start of the much-anticipated 'Altcoin Season.' This period denotes the outperformance of altcoins relative to Bitcoin and Ethereum. However, if the market cap reverses from the current position, it could invalidate the bullish pattern. Hence, the two possible scenarios present a suspenseful moment in the crypto sphere.
The Future Projection
Backing up this prediction, Crypto Feras forecasts the next major altcoin season will kick in between December 2023 and May 2024. This prediction also aligns with the anticipation of Bitcoinโs halving, expected to occur in April next year.
The crypto horizon holds exciting prospects for altcoin traders and investors. While the markets' volatility calls for a measured approach, the 'Altcoin Season' of 2023 presents a potential golden window. Investors and enthusiasts should keep an eye on the market cap trends and other signals to seize potentially lucrative opportunities created during this predicted altcoin revolution.
Remember, market conditions can change swiftly, and past performance does not dictate future returns. Always conduct thorough research and exercise prudence in your investment decisions.
