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Is the Altcoin Season Coming Soon? This Rare Bullish Pattern Hints At It (Analyst)

Summary:
TL;DR Bitcoin consolidates at k, with a downturn in altcoins except for LUNA-related tokens. Crypto analyst MoustacheTA spots a Golden Cross on the monthly Altcoin market chart, signaling a potential uptrend. The Golden Cross, a bullish pattern where the short-term moving average surpasses the long-term average, historically aligns with altcoin rallies, as seen in 2016 and 2020. The onset of altcoin season often follows a decrease in Bitcoin dominance. With most altcoins linked to Ethereum, the rising interest and price movements in Ethereum are closely watched for their impact on altcoin prices. Golden Cross Spotted on the Altcoin Market Chart Bitcoin’s fate is uncertain as the crypto asset struggles at k. As CryptoPotato reported, Bitcoin has entered a

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TL;DR

  • Bitcoin consolidates at $37k, with a downturn in altcoins except for LUNA-related tokens. Crypto analyst MoustacheTA spots a Golden Cross on the monthly Altcoin market chart, signaling a potential uptrend.
  • The Golden Cross, a bullish pattern where the short-term moving average surpasses the long-term average, historically aligns with altcoin rallies, as seen in 2016 and 2020.
  • The onset of altcoin season often follows a decrease in Bitcoin dominance. With most altcoins linked to Ethereum, the rising interest and price movements in Ethereum are closely watched for their impact on altcoin prices.

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Golden Cross Spotted on the Altcoin Market Chart

Bitcoin’s fate is uncertain as the crypto asset struggles at $37k. As CryptoPotato reported, Bitcoin has entered a consolidation phase characterized by a slight uptrend and remarkably low volatility.

Most of the altcoin market is also in the red, except for LUNA-related tokens. However, the beginning of the altcoin season could be closer as one famous crypto analyst has identified a rare trend in the altcoin market— the formation of a Golden Cross on the monthly Altcoin market chart.

The analyst, who goes by the username MoustacheTA, shared a screenshot showing the pattern, predicting that the Golden Cross could manifest shortly before the end of the month.

The golden cross is a bullish technical chart pattern suggesting a significant uptrend. It occurs when a stock’s short-term moving average crosses above its long-term moving average. This pattern is opposite to the bearish signal called a death cross. Moreover, the analyst emphasized the credibility of this indicator when formed on a higher time frame, such as the monthly chart.

According to the analyst, the previous instances of a Golden Cross on the Altcoin market charts were spotted in 2016 and 2020 —both coinciding with substantial rallies in several altcoins. While historical data does not indicate future price action, the analyst suggested the potential for a similar scenario in the current market.

This pattern has occurred only twice in cryptocurrency history and is a precursor to a bullish trend.

Altcoin Season Incoming?

One of the main elements preceding the altcoin season is a waning Bitcoin dominance. There are exceptions, of course, but that’s typically how the altcoin season begins as traders look for alternative assets to maximize returns.

Most altcoin projects are built on Ethereum, which means that when the ETH price rises, so does the price of those altcoins shortly after. That’s why market participants are closely watching ETH’s price movements, even more so following the uptick in institutional holdings of Ethereum.

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