- Crypto analyst Moustache identifies a golden cross in the altcoin market cap, signaling a potential major rally.
- Bitcoin’s relative decline paves the way for altcoin surge; market dynamics shift as altcoins exhibit independent growth trends.
- Despite positive momentum in altcoins, ‘altseason’ criteria remain unmet, suggesting caution is warranted amid rising market optimism.
Altcoins are showing signs of a significant bullish turn. A crypto analyst known as Moustache recently highlighted an impending golden cross in the altcoins market cap’s monthly chart on X. This rare event, marked by the crossing of the SMA-20 (simple moving average) over the MA10, has historically been a precursor to substantial rallies.
Altcoin Similar occurrences in 2016 and 2020 marked the beginning of altcoin bull markets, making this development particularly noteworthy for investors and market watchers.
This golden cross event comes when altcoins move independently of Bitcoin ‘s trajectory. Unlike previous cycles where altcoins lagged, this early movement suggests a distinct shift in market dynamics.
Additionally, the MACD (Moving Average Convergence Divergence) for the altcoin market cap is nearing a breakthrough above the zero-line, further indicating growing positive momentum.
Bitcoin traded at $42,690 at press time, after a 1.32% decrease in the past 24 hours, according to CoinStats. This indicates that altcoins are leading the current charge, a trend that diverges from the usual pattern of Bitcoin dictating market movements.
BTC/USD 1-day price chart (Source: CoinStats )
Bitcoin has surged over 60% since Oct. 1, primarily due to dwindling Treasury yields and expectations that the US Securities and Exchange Commission will soon approve one or more spot BTC ETFs. As of writing, BTC was up 161% yearly, and ether, the second-largest cryptocurrency, traded 88% higher.
The upward trend in the altcoin market is accompanied by growing interest and optimism. Michaël van de Poppe, CEO of MN Trading, has expressed a positive outlook on X, stating ,
Altcoins are starting their entire bull cycle and can generate way higher returns than we see now. It’s simply just the start.
However, Blockchaincenter’s ‘altseason’ criteria, which requires 75% of the top 50 altcoins to outperform Bitcoin over three months, has not yet been met, tempering the enthusiasm with a measure of caution.
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