A Bearish Signal Seen on Altcoins Charts Could Mean Altcoin Season Is Over

The cryptocurrency enthusiasts think the altcoin season is eventually here, as some altcoins have recorded remarkable upside moves.

Nonetheless, a look at the price charts of several altcoins suggests bearish moves, and it makes some people wonder whether the said altcoin season has come to an end before it officially started.

Let’s talk about what is known as altcoin season in the cryptocurrency space. During the cryptocurrency bubble, both Bitcoin and altcoins recorded an explosion alongside each other. However, since then, there has been something like an inverse relationship between the two.

The prices of altcoins declined while Bitcoin’s price was pumping in 2019. When it is otherwise such that the altcoins gain against Bitcoin is regarded as altcoin season. When the season is in place, some altcoins record several hundred to thousand percent rallies against Bitcoin. However, the season has appeared a few times in the previous few years and mostly ends abruptly with more downside moves.

As for the current altcoin season, the two altcoins that have recorded remarkable upsides are Chainlink and Dogecoin. Chainlink is in full price discovery mode and there are a few signs that it will stop. Analysts often utilize Dogecoin to know whether an altcoin season is active and the asset’s growth recently is more than 100 percent.

Even XRP is not left out of the upside moves despite being the industry underperformer. XRP recorded about a 10 percent rally this week. According to data, the chances that LTC will move lower are only 8 percent. Despite being clear that altcoin season is active, an accurate bearish signal with the potential to stop the rally has appeared across several altcoins.

The bearish signal, which appeared across the charts of several altcoins is known as the TD Sequential indicator 9 sell setup. Analysts have seen it in both USD and BTC pairs on several assets, including Chainlink.

Most importantly, the signal appeared on Ethereum in both USD and BTC pairs. That of Ethereum is dangerous because it is the largest altcoin in the cryptocurrency market and is most times the leader of the entire market when it comes to larger moves.

Therefore, if Ethereum falls, other altcoins could follow. This is more likely if Bitcoin starts declining or even the stock market.

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