Altcoin Market Shows Signs Of Potential Upsurge

According to Cointelegraph, the altcoin market has been trending downward since the 2024 bull run faced challenges in March. However, several key indicators suggest that a recent recovery could signal a significant move ahead, as noted by crypto analysts. From a technical standpoint, the altcoin market setup appears robust, maintaining its position above an ascending trendline that has supported TOTAL2—the cumulative market capitalization of all cryptocurrencies except Bitcoin (BTC)—since the 2017 bull cycle. Independent crypto analyst Mags highlighted in an Oct. 26 post on X that the altcoin market cap is currently testing a long-term trendline support that has held strong for the past eight years. This retest of the multi-year support line is a bullish indicator, suggesting that the downtrend is easing, and increased buying at the current level could drive altcoin prices higher. Mags added that with BTC also breaking out, the market seems poised for a significant move upward. At the time of publication, Bitcoin was facing resistance from its 2021 all-time high of around $69,000. A decisive close above this level for BTC and TOTAL2 holding above the long-term trendline support could indicate a substantial upward movement in the market. Fellow analyst Moustache also pointed out the potential for a breakout from a broadening wedge, predicting that within the next 1-2 weeks, TOTAL2 might experience an inevitable breakout from the 7.5-month descending broadening wedge. Moustache noted that the recent 11% drop in TOTAL2 from $981 billion to $873 billion between Oct. 21 and Oct. 25 could be a deviation as the price attempts to reclaim the trendline support. Bitcoin dominance, a metric measuring Bitcoin’s market share relative to the overall crypto market, has been on an upward trend since the beginning of 2023, reaching a three-and-a-half-year high of 59.75 on Oct. 25. At the time of publication, BTC dominance stands at 59.56%, indicating that it is still “Bitcoin season.” Popular crypto YouTuber Crypto Banter suggests that a “parabolic” altseason phase occurs once Bitcoin dominance drops significantly. Pseudonymous crypto analyst Yoddha argued that Bitcoin dominance could be “squeezing” inside an ascending wedge, signaling an imminent altcoin rally. Fellow analyst Crypto Rover echoed this sentiment, stating that Bitcoin dominance is about to crash, indicating that altseason is close. Currently, the level of Bitcoin dominance means altcoins are still underperforming BTC. Data from Blockchain Center shows that only 29% of the top 50 altcoins have outperformed BTC in the last three months, far from the 75% needed for an official “altszn.” With Bitcoin challenging new highs, market participants could watch for a possible breakout by the TOTAL2 market cap, a reduction in Bitcoin dominance, and an increase in the Altcoin season index. If these factors align, they could signal the beginning of an altcoin season in the coming months. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.