Key takeaways:
- A cup-and-handle breakout in altcoins points to a potential surge toward a $2.78 trillion market cap, signaling the onset of an “altcoin season.”
- Meanwhile, Bitcoin’s dominance slipping below key moving averages indicates altcoins could outperform in the short term.
According to crypto traders, many altcoins are currently displaying some bullish patterns that suggest “it’s altcoin season” as Bitcoin dominance begins to drop.
Altcoins set sights on a “phenomenal” surge toward $2.78 trillion market cap
In a recent altcoin analysis, trader Jelle points to a breakout from a strongly bullish cup-and-handle continuation pattern on the TOTAL3/USD weekly chart.
TOTAL3 tracks the total market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum.
A breakout above the pattern’s neckline at $1.1 trillion could propel TOTAL3 nearly 100% higher, targeting $1.98 trillion.
“Altcoins have broken out from the multi-year cup and handle!” the trader wrote in a Thursday post on X, adding:
“One last hurdle to overcome, but once this clears $1.1 trillion, everything goes nuts.”
Veteran trader Peter Brandt identified a similar cup-and-handle formation on TOTAL2 — the total market capitalization of all cryptocurrencies excluding Bitcoin — on the weekly chart.
The pattern projects a measured move to $2.78 trillion, implying a 97% rally in the altcoin market cap.
Commenting on the breakout, Brandt said:
“It’s altcoin season.”
The bullish outlooks from Jelle and Brandt align with altcoins delivering their strongest performance against Bitcoin since late November 2024, breaking out of a multi-month downtrend, according to analyst Stockmoney Lizards.
Driving the altcoin rally is Ether’s 24% gain over the past week, signaling a potential capital rotation out of Bitcoin as other cryptocurrencies begin to catch up.
“ETH is trading at $3,400. That’s how fast things can go,” noted MN Capital founder Michael van de Poppe, adding:
“These six months are going to be phenomenal for Altcoins.”
Is Bitcoin season ending?
Bitcoin dominance — a key indicator of altseason that measures Bitcoin’s market share relative to the broader crypto market — offers insight into investor sentiment and risk appetite.
Since June 27, this metric has been trending downward, hitting an eight-week low of 62.61% on Thursday.
As previously reported, several analysts believe Bitcoin’s market dominance has peaked, with altcoins gaining momentum.
Popular crypto analyst Mikybull Crypto noted, “Bitcoin dominance is dumping,” after it broke below key support levels — the 50-day simple moving average at 64.78% and the 100-day SMA at 64.38%.
“Massive for altcoins.”
Bitcoin dominance is “breaking down slightly but has a long way to go to confirm a larger turnaround is due,” noted Daan Crypto Trades, cautioning that it may still be too early to declare a full-fledged altseason.
For instance, Blockchain Center’s altcoin index has more than tripled since June 22. However, only 39% of the top 50 altcoins have outperformed Bitcoin over the past three months — well below the 75% threshold required to officially mark the start of an altcoin season.
