Cryptocurrency traders are watching the combined market capitalization of altcoins for a potential bullish inverse head-and-shoulders (H&S) price pattern. If the pattern is completed, it could signal an alt season or outperformance of alternative cryptocurrencies relative to Bitcoin (BTC) and Ether (ETH). According to Josh Olszewicz, crypto trader and former researcher at Valkyrie Investments, the pattern is forming when an asset chalks out three price troughs, with the middle one being the lowest. A breakout or a bearish-to-bullish trend change is confirmed once prices rise above the trendline (neckline), connecting the peaks between the lows.
The altcoin market cap is showing some sort of triple bottom/inverted head-and-shoulders situation, Olszewicz said in a market update. I don’t buy the head-and-shoulders pattern that’s sitting in the middle of consolidation. I am waiting for a break above $300 billion, he added. If the altcoin market cap rises past $300 billion, it could signal an onset of alt season – a crypto slang for a period where altcoins outperform market leaders Bitcoin and Ether.