While rumors that the SEC will approve a spot Bitcoin ETF in the coming months have allowed Bitcoin to exceed $30,000, BTC is now consolidating at $29,000. While BTC continues to exhibit sideways movements, altcoins that fail to perform as expected from them are waiting for their turn.
At this point, former Valkyrie Investments analyst Josh Olszewicz made statements about the start of the altcoin season. Speaking to Coindesk, Josh Olszewicz said that an inverted head-and-shoulder pattern has formed, which is one of the most reliable patterns to show bullishness in the altcoin market. Pointing out that a potential altcoin bullish season may begin after the completion of this model, the analyst said:
An upside-down price pattern is forming, showing the bullish trend in the altcoin market. The completion of this pattern potentially marks the so-called “alt season”, a period in which altcoins outperform Bitcoin and Ethereum (ETH) and begin the uptrend. At this point, I expect a breakout in altcoins when the altcoin market cap rises above $ 300 billion.
The inverted head-and-shoulder pattern is known as one of the most reliable bull technical analysis patterns on the market. However, the analyst stated that this pattern could also reverse, telling investors that there are two scenarios for altcoins.
The first scenario is that the altcoin market cap would fall further from its current level, invalidating a possible reverse head-and-shoulders pattern. The second scenario is the start of altcoin season, when the altcoin market cap exceeds $300 billion and after that, altcoins experience a breakdown and outperform the biggest cryptocurrencies BTC and ETH.