Is it Altcoin Season? The Charts Say It’s Almost Time

Bitcoin dominance, a measure of BTC’s market share versus the total crypto pie, slipped to 62.6% this week, continuing a multi-week decline. It’s now cracked below both the 50-day and 100-day moving averages, a breakdown that many traders view as the canary in the coal mine for a new altcoin surge.

Bitcoin dominance is falling, source: X

That matches data from Blockchain Center’s altcoin index, it’s been climbing steadily, up 3x since June, but only 39% of the top 50 alts have outperformed BTC in the past 90 days. True altseason needs that number to be north of 75%. Translation? The engines are warming up, but we’re not at liftoff.

Trader Jelle, known for sharp macro charting, pointed to a textbook cup-and-handle pattern forming on the TOTAL3 chart, this tracks the total market cap of all crypto excluding Bitcoin and Ethereum. If TOTAL3 breaks cleanly above $1.1 trillion, Jelle says, it could double to nearly $2 trillion.

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

Prepare for altcoins to go nuts as altseason kicks off, Source: X

Veteran chartist Peter Brandt agrees. He sees a similar breakout brewing in the TOTAL2 chart (altcoin market minus just Bitcoin), projecting a potential rally to $2.78 trillion. That’s not hopium. That’s a 97% move on technicals alone.

“It’s altcoin season” wrote Peter Brandt on X

Fueling this breakout narrative is Ether’s performance, it’s up 24% in a week, leapfrogging most of the market and hinting at a classic capital rotation from BTC to large-cap alts. oppe. And if ETH leads, the rest often follow. We’ve seen this movie before.

The signs are all over the place, technical breakouts, falling BTC dominance, ETH surging, and social sentiment heating up like it’s 2021 again. But we’re not in full-blown altseason just yet. Think of it more like early spring. The ice is melting, but summer hasn’t hit.

That said, the risk-reward ratio is shifting. With Bitcoin dominance cracking key support and bullish patterns stacking up across the alt market, this might be one of those rare windows when betting on the underdogs makes sense.

If you’ve been sitting on the sidelines waiting for a signal, this might be it.

Or, as Peter Brandt succinctly put it: “It’s altcoin season.”