- Altcoin season index sits low, mirroring past pre-rally patterns
- $Total3 charts indicate breakout potential toward $2 trillion
- Fractal and macro patterns hint at a major altcoin resurgence
Altcoin momentum appears to accelerate as analysts point to a broad range of technical and macroeconomic indicators. As Bitcoin consolidates, investors now pay attention toward smaller-cap assets that show signs of strength. Analysts believe altcoins may soon lead the crypto market.
Bitcoin Loses Dominance to Altcoins
Crypto analysts highlight indicators that show Bitcoin is losing some of its dominance to altcoins. The index for altcoin season is still in the low twenties, which has historically preceded altcoin rallies. Even though Bitcoin maintains dominance, altcoins have attracted more attention and formed new structures.
The technical patterns for altcoins, except for Bitcoin and Ethereum, have started to look bullish. Trader Tardigrade compared Bitcoin’s past cycles to the $Total3 structure, which indicates a possible rise in the future. The chart shows that a breakout could push the market cap to reach $2 trillion if the current momentum continues.
Crypto Rover analysed the market sentiment and market makers’ behaviour in the past few weeks. According to him, Bitcoin’s dominance could be close to its peak as investors choose to invest in altcoins. Historically, excessive bearishness on altcoins comes before a sharp rise in their prices.
Carl Moon identifies a wedge pattern on multiple altcoin pairs when compared to Bitcoin. Historically, this structure has preceded major breakout, mainly after long corrections. He pointed out that the wedge pattern is close to its highest point, which hints at a potential reversal.
Moustache pointed out that the current market movement mirrors the 2015 to 2017 accumulation and breakout cycle. The chart shows that from 2018 to 2025, there was a continuous reaccumulation phase as compression tightens. A major breakout could happen if the current resistance levels are broken.
Macroeconomic Factors Could Trigger an Altcoin Season
Analyst Michael van de Poppe pointed out certain macroeconomic factors that could favor altcoins in the near future. He mentioned that the central bank rate cuts and a weaker dollar were the main reasons for the risk-on trend. Fluctuations in Asian currency could also push more people to invest in digital assets.
He pointed out that psychological cycles are important to time when altcoin season will happen. He noted that investor sentiment about altcoins is at the lowest point since 2021. In the past, periods of extreme investors pessimism have often resulted in major recoveries for undervalued assets.
Analysts claim that the structure of markets is not the same as before and old patterns may not be relevant now. Bitcoin’s new record high just before its halving may indicate altered altcoin seasons. Nevertheless, the altcoin cycle could become longer and more intense because of this delay.
Although Bitcoin remains stable, the altcoin market appears ready for rotation. If the current trends continue, traders could soon see breakout across the market.
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