Analysts tirelessly seek indicators that offer insight into the next big trend. A recent technical analysis by an anonymous expert, known as Mikybull Crypto, sheds light on what could be the advent of an “Altcoin Season”—a phase where alternative cryptocurrencies, or ‘altcoins,’ experience a significant upswing in market value.
One key focus of cryptocurrency market analysis is the Ethereum (ETH) to Bitcoin (BTC) ratio, which provides a comparative measure of the two major cryptocurrencies’ strength. The latest data suggests that Ethereum is picking up momentum against Bitcoin, as evidenced by a notable increase in the ETH/BTC value ratio. This shift could be indicative of a larger movement toward altcoins among investors, hinting at a potential diversification away from Bitcoin-centric portfolios.
Supporting this view, the Moving Average Convergence Divergence (MACD) indicator—a tool used to identify changes in the strength, direction, momentum, and duration of a trend in a stock’s price—exhibited a bullish cross for the first time since 2019. This crossing, where the MACD line overtakes the signal line, is traditionally viewed as a precursor to an uptrend. Coupled with the statement about ‘4 reliable global indicators’ turning bullish since 2016, it seems to underscore a robust optimism in predicting the market’s trajectory.
Further bolstering the sentiment for a bullish altcoin market is another analyst’s examination using Exponential Moving Average (EMA) Ribbons, posted by Mags on X. These ribbons serve as a visual composite of multiple EMA lines, each representing a different time period, to gauge the market trend’s direction and strength. The observed altcoin displayed significant bullish signals—like the ribbons turning green—heralding a buying opportunity.
This pattern has historical backing; the same altcoin marked a 14x increase after similar green signals in the past. Presently, with another flip to green, the prediction stakes on a 7x growth, expressing confidence in the altcoin’s bullish run.
Investment strategies derived from these analyses suggest entering the market on a ‘green ribbon’ signal and considering exit or caution upon seeing a ‘red ribbon.’ Such strategies presume the EMA Ribbon’s color transitions to be reliable predictors of high time frame (HTF) trend shifts, indicating periods for accumulation rather than disposition of altcoins.
