Altseason Incoming? Analysts See 'Phenomenal' Rally
Altcoins Eye Massive Growth: Technical Indicators Point Upward
Crypto analysts are buzzing about a potential "altseason," driven by bullish technical patterns emerging in the altcoin market as Bitcoin dominance softens.
Key Takeaways:
- Altcoins' cup-and-handle pattern suggests a rise to a $2.78 trillion market cap, signaling a possible "altcoin season."
- Bitcoin dominance dipping below key moving averages indicates altcoins could outperform in the short term.
Traders are spotting bullish signals across various altcoins, fueling speculation about a shift in market dynamics away from Bitcoin.
Altcoins Target $2.78 Trillion Market Cap
Popular trader Jelle highlights a breakout from a bullish cup-and-handle setup on the TOTAL3/USD weekly chart. TOTAL3 represents the combined market capitalization of all cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH).
A break above the pattern's neckline at $1.1 trillion could propel TOTAL3 by approximately 100%, reaching $1.98 trillion.
Veteran trader Peter Brandt also observed a similar setup on TOTAL2 (the total market cap excluding Bitcoin), with a target of $2.78 trillion, representing a potential 97% rally in the altcoin market cap. Brandt simply stated, "It's altcoin season."
This bullish outlook coincides with altcoins demonstrating their strongest performance against Bitcoin since late November 2024.
Ethereum's impressive 24% gain over the past week is contributing to the altcoin surge, suggesting a capital shift from Bitcoin as other cryptocurrencies catch up. MN Capital founder Michael van de Poppe anticipates "These six months are going to be phenomenal for Altcoins."
Is Bitcoin's Reign Ending?
Bitcoin dominance, reflecting Bitcoin's market share relative to the overall crypto market, is a key indicator of altseason potential. A downward trend suggests increasing investor appetite for altcoins.
Since June 27, Bitcoin dominance has been declining, hitting an eight-week low of 62.61%.
Analysts note that Bitcoin dominance may have peaked as altcoins gain momentum. Analyst Mikybull Crypto points out that "Bitcoin dominance is dumping" as it falls below critical support levels. However, Daan Crypto Trades suggests it might be premature to definitively declare an altseason.
Blockchain Center's altcoin index has more than tripled since June 22 but remains at 39%, below the 75% threshold needed to confirm an official altcoin season. This index measures the percentage of the top 50 altcoins outperforming Bitcoin over the last three months.
Disclaimer: This is not investment advice. Cryptocurrency investments are risky, and you may lose money. Conduct your own research before investing.
For secure and reliable smart contract audits and development, consider Codeum. We offer comprehensive smart contract audits, KYC verification, and custom smart contract development to ensure the security and efficiency of your blockchain projects. Partner with Codeum for tokenomics and security consultations, and benefit from our partnerships with top launchpads and crypto agencies.