With Bitcoin nearing all-time highs, market analysts and metrics suggest the possibility of an upcoming “altseason,” a period where altcoins outperform Bitcoin in price gains. Key signals in the crypto market hint at this potential shift as traders watch Bitcoin’s dominance and the cumulative market capitalization of all altcoins (TOTAL2).
Altcoin Market Showing Technical Strength
Since the March 2024 crypto bull run plateaued, altcoins have generally trended downwards. However, independent crypto analyst Mags noted on October 26 that the altcoin market setup remains strong, holding above an ascending trendline established in 2017. This multi-year support line is a significant bullish indicator, suggesting that the altcoin market could be primed for a major move if TOTAL2 holds this level.
Altcoin market capitalization. Source: Mags
“With BTC also breaking out, the market looks ready for a massive move,” said Mags, adding that it’s “time to send it higher.” Fellow analyst Moustache shared this optimism, stating that a breakout from a descending broadening wedge could happen within the next two weeks, signaling a long-awaited upward push for altcoins.
Bitcoin Dominance Hints It’s Still Bitcoin Season
Bitcoin dominance, currently at 59.56%, remains a key indicator for altseason predictions. When Bitcoin dominance declines, altcoins typically gain momentum. However, dominance has been on an upward trend since early 2023, suggesting it is still “Bitcoin season.” Popular crypto YouTuber Crypto Banter and pseudonymous analyst Yoddha both note that a drop in Bitcoin dominance could signal the start of alt season.
TOTAL2 daily chart. Source: Moustache
According to Yoddha, Bitcoin dominance appears to be “squeezing” inside an ascending wedge, indicating a possible reversal. Fellow analyst Crypto Rover added, “Bitcoin dominance is about to crash so hard,” suggesting that an altcoin rally could be imminent.
Awaiting Confirmation Signals
According to Blockchain Center, only 29% of the top 50 altcoins have outperformed BTC over the past three months—well below the 75% needed for an official “altseason.” If Bitcoin decisively breaks above its all-time high and TOTAL2 surpasses its trendline, analysts expect these factors could set the stage for altcoins to gain momentum. In the coming months, traders will be closely watching for these signals to align, potentially igniting the long-awaited alt season.
