Altcoin Season Alert: 3 Charts Signal Massive Rally as Bitcoin Dominance Hits 8-Week Low

Andrew Chen
BITCOIN (BTC)

Getting your Trinity Audio player ready...

Key Takeaways:

  • Altcoins have broken out of multi-year chart patterns, with TOTAL3 eyeing a rally toward $1.98T and TOTAL2 toward $2.78T.
  • Ethereum’s surge and Bitcoin’s declining dominance signal a potential shift in market dynamics.
  • Confirmation of a full-blown altcoin season still awaits, with altcoin outperformance not yet widespread enough for consensus.

A series of bullish technical patterns and strong altcoin performance are fueling speculation that a major “altcoin season” may be underway. Traders point to a breakout in the TOTAL3 chart — representing the market cap of all cryptocurrencies excluding Bitcoin and Ethereum — as a key signal of the trend shift.

TOTAL3 Breakout Points to Potential $2.78 Trillion Altcoin Rally

Crypto trader Jelle highlighted a significant cup-and-handle breakout forming on the TOTAL3/USD weekly chart. With a neckline around $1.1 trillion, the breakout suggests that the altcoin market cap could surge by nearly 100% to $1.98 trillion.

Veteran chartist Peter Brandt echoed the bullish outlook, referencing a similar continuation pattern in TOTAL2 — the total crypto market cap minus Bitcoin. Brandt estimated a rally toward $2.78 trillion, nearly doubling the current altcoin market size.

“Altcoins have broken out from the multi-year cup and handle!” Jelle said on X. “One last hurdle to overcome, but once this clears $1.1 trillion, everything goes nuts.”

Ethereum Leads the Charge, Sparks Marketwide Momentum

A major catalyst for this altcoin upswing has been Ethereum’s recent price action. ETH is up 24% over the past week, reaching $3,400. According to analyst Michael van de Poppe, this performance hints at a broader capital rotation away from Bitcoin.

“These six months are going to be phenomenal for Altcoins,” van de Poppe said, emphasizing that many top altcoins are still undervalued compared to their historical peaks.

Analysts like Stockmoney Lizards and Mikybull Crypto have also observed a strong breakout in the TOTAL3/BTC chart, suggesting altcoins are finally outperforming Bitcoin for the first time in months.

Also Read: Institutions Buy 11,000 More Bitcoin as BTC Drops $7,000 – ETF Flows Show No Fear

Bitcoin Dominance Drops to Eight-Week Low

A key metric used to assess market dynamics — Bitcoin dominance — has been in decline since late June, now sitting at 62.61%. This downward trend is often viewed as a signal that investor interest is shifting toward altcoins, indicating a higher appetite for risk.

Crypto analyst Daan Crypto Trades cautioned that while Bitcoin’s dominance is breaking down, it’s still early to confirm a long-term reversal. Similarly, Blockchain Center’s Altcoin Season Index currently shows that only 39% of the top 50 altcoins have outperformed Bitcoin over the past 90 days — well below the 75% threshold for an official altseason.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Related Posts