Chainlink set a new all-time high and has gone parabolic. Dogecoin has gone viral. Even XRP is pumping. The crypto space is clamoring that altcoin season is finally here.
However, sell signals appearing on the price charts of numerous alts suggest otherwise. Is alt season already over before it officially began?
Altcoin Season Explained
Bitcoin and altcoins exploded alongside one another during the crypto bubble. But since then, the two crypto assets have had a somewhat inverse relationship.
When Bitcoin was pumping all throughout 2019, altcoins fell further in value. This left altcoin valuations in BTC plummeting to bear market lows.
Related Reading | Small Cap Altcoins Have Outperformed Bitcoin By 5x in 2020
When the opposite happens, and alts gain against Bitcoin, it’s considered an altcoin season. During these phases, it isn’t uncommon to see several hundred to thousand percent rallies against the leading cryptocurrency by market cap.
These phases have been very few and far between over the last few years, and usually end abruptly with more downside. But is this time different?
TD 9 Sell Setup Altcoins For Another Fall Against Bitcoin
Chainlink recently set yet another all-time high record and is still climbing. The asset has went into full price discovery mode and shows little signs of stopping.
Dogecoin, a coin often used by analysts as an indicator an alt season is active, has grown by over 100% in recent days. TikTok users are “pumping” the “share price” of the “stock.”
Irrational exuberance hasn’t been this apparent since the peak crypto hype bubble in 2017. Similar viral videos depicting other cryptocurrencies on different platforms ran regularly at the time. Everyone was a genius investor.
Related Reading | Crypto Asset Goes Viral, As TikTok Users Plan Coordinated Pump
The industry underperformer XRP even saw a nearly 10% rally this week. Data shows there’s just an 8% chance of Litecoin going any lower. Crypto is back in a big way.
All the major boxes are checked for an altcoin season. But an accurate sell signal just triggered across several alts that could put an end to the rally.
The signal is the TD Sequential indicator “9” sell setup, issued on daily price charts across multiple altcoins. The signal is visible on both USD and BTC pairs on many assets.
Of these alts include breakout crypto market superstar Chainlink. The TD9 sell has now triggered across multiple timeframes.
ETHBTC Daily TD Sequential "9" Sell Setup | Source: TradingView
Another dangerous sign for alts, is the TD9 sell on Ethereum on both USD and BTC pairs. Ethereum is the largest altcoin in the crypto market and often leads the rest of the market on larger moves.
Ethereum tanking could take the rest of the crypto market down with it. Especially if Bitcoin begins falling, or worse yet, the stock market and everything else experiences a “second-leg down” scenario.
There’s still much fear left in the market, and with outbreak cases across the globe still not under control, anything is possible. And due to how accurate and reliable the TD Sequential indicator has been, so is more downside in crypto assets against BTC.
