The altcoin market appears to be forming a head-and-shoulders pattern, one of the most reliable bearish setups in technical analysis. If confirmed, this pattern points to significantly lower levels — deep into bear market territory.
On top of that, the weekly stochastic RSI is overextended and has little choice but to correct. This suggests that if an altseason is coming, it needs to kick in fast before momentum fades.
Hopefully, this bearish scenario will be invalidated. Still, the resemblance to the 2021 bull market top is striking: back then, the same formation appeared, and its validation proved devastating for altcoins.
This is definitely a pattern to watch. It runs counter to the prevailing narrative of an imminent altseason, which makes it even more concerning. I truly hope I’m wrong — but the chart is showing it clearly.
On top of that, the weekly stochastic RSI is overextended and has little choice but to correct. This suggests that if an altseason is coming, it needs to kick in fast before momentum fades.
Hopefully, this bearish scenario will be invalidated. Still, the resemblance to the 2021 bull market top is striking: back then, the same formation appeared, and its validation proved devastating for altcoins.
This is definitely a pattern to watch. It runs counter to the prevailing narrative of an imminent altseason, which makes it even more concerning. I truly hope I’m wrong — but the chart is showing it clearly.
Trade active
Updated and cleaned chart. Is the price action will follow this idea or will it be invalidated by a 
BTC pump?
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Telegram: t.me/metaisland_gg
Twitter X: x.com/cryptonikkoid
Web: nikkoid.com
I do not answer to private messages. Use the comment section of the idea or script, or use Telegram.
Twitter X: x.com/cryptonikkoid
Web: nikkoid.com
I do not answer to private messages. Use the comment section of the idea or script, or use Telegram.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.