• A bullish weekly cross on a major indicator has appeared in the altcoin market, a pattern last seen in 2016 and 2020 before months-long rallies.

  • Historical data shows similar bullish crosses in previous cycles led to substantial altcoin gains, fueling speculation of a new “altcoin season.”

  • This signal suggests possible momentum for altcoins, but traders are cautious about external factors that could influence the market.

A big event relating to the altcoin market is creating interest amongst the investors. There has been a bullish weekly cross when it comes to one of the most-watched technical indicators which has triggered debates over the possibility of a strong altcoin season being underway. 

This signal was recorded previously in the run-up to the 2016 and 2020 Federal elections and was then maintained at a higher rate for several months afterwards. As the cycles are aligning once again, traders and analysts pay attention to whether altcoins will experience another elongated rally.

Historical Significance of the Bullish Weekly Cross

Weekly bullish cross is a technical analysis pattern traded by investors who are searching for information about the higher timeframe trends. In prior cycles, this indicator’s emergence was followed by the phenomenon known as the altseason, in which altcoins or other cryptocurrencies outperform or moon along with Bitcoin. After this cross in 2016, followed by 2020 and achieving a strong promise for upward altcoin action, many people began to regard this cross as a signal for potential profit.

Patterns from Past Markets Will History Repeat Itself?

Market cycles are a key concept in cryptocurrency, where repetitive price patterns often emerge. Altcoin cycles, in particular, tend to mirror these broader crypto cycles. The bullish cross noted in August 2016 and in March 2020 was again accompanied by several months of higher prices in most altcoins. Such Cycle progress followers are observing these similarities and are seeing the recent Bullish cross as an indication of the same.

https://twitter.com/el_crypto_prof/status/1855902750522925318

The term altcoin season means a situation in which other cryptocurrencies, apart from Bitcoin, trade higher. With this bullish signal being active traders are beginning to think that another altcoin season could be only round the corner. But conditions of each phase are different and some believe that outer economical factors still can affect cryptocurrency markets. It thus pertinent to check the existing explanatory factors that determine the current trend or trajectory of patterns conforming to the general patterns.

The post Weekly Bullish Cross Appears for Altcoins—What Past Cycles Tell Us appeared first on Crypto News Land.