Is the altcoin season about to begin? Key signals worth noting
ETH/BTC is at the bottom of a descending expanding wedge.
• A significant bullish divergence has appeared weekly, indicating potential upward space.
• ETH/BTC has reached a critical 4-year downtrend line.
The cryptocurrency market has been rife with speculation about the upcoming altcoin season. The latest trends in ETH/BTC suggest that a shift may be imminent, with several technical signals pointing towards a potential breakout.
ETH/BTC is at a critical turning point. One of the major indicators driving this speculation is the ETH/BTC trading pair.
Currently, it is at the bottom of a descending expanding wedge, a pattern that typically precedes a strong upward move.
Historically, breaking out of this structure has led to significant price increases. Additionally, ETH/BTC has also reached a 4-year downtrend line, a level that has previously served as strong resistance.
If this level holds and buyers step in, we may see a significant reversal in Ethereum's performance relative to Bitcoin.
Bullish Divergence: A Sign of Strength? Another key factor is the emergence of a significant bullish divergence weekly. This occurs when price action makes lower lows while indicators like the Relative Strength Index (RSI) form higher lows.
This pattern often indicates a weakening of bearish momentum and an increased likelihood of a trend reversal.
#Altcoin
If you want to know why altcoins are responding very well to $BTC:
- ETH/BTC is at the bottom of a descending expanding wedge
- We have also seen significant bullish divergence weekly
- ETH/BTC has also reached a 4-year downtrend line
Is altseason on the horizon? When Ethereum strengthens against Bitcoin, it usually lays the groundwork for a rebound in altcoins. If ETH/BTC begins to trend upward, investors may start shifting funds from Bitcoin to altcoins, thereby driving a broader altcoin season.
While it’s too early to confirm, technical indicators suggest that altcoins may be gearing up for a strong rally.
Conclusion The cryptocurrency market is cyclical, and all signs indicate that altcoins may be poised for explosive volatility.
The position of ETH/BTC in the expanding wedge, the bullish divergence, and historical trend lines all suggest that altcoin season may be closer than many expect.
