Altcoin Market May Be on the Brink of a Breakout as Analysts Point to Several Key Indicators Suggesting a Shift in Momentum
- Linda HamiltonOriginal
- 2024-11-09 09:08:16159browse
After months of declining performance, a potential “altcoin season” could be on the horizon.
The altcoin market may be preparing for a breakout as several indicators suggest a shift in momentum. After lagging behind Bitcoin for most of 2023, several analysts believe altcoins could be set for an extended period of outperformance.
The total market capitalization of altcoins (TOTAL2) is testing a crucial long-term support level. This trendline has acted as a key support for the altcoin market since the 2017 bull cycle.
Independent analyst Mags highlighted the importance of this support in an Oct. 26 post on X. He noted that rebounds from this level have preceded major rallies.
“The altcoin market cap is currently testing a long-term trendline support that has held strong for the past eight years.” Mags wrote in an Oct. 26 post on X. He added that this retest signals a bullish reversal, especially if buying pressure holds at current levels.
Analyst Moustache also pointed to a descending broadening wedge on the TOTAL2 chart. He described the recent 11% drop from $981 billion to $873 billion as a “deviation,” not a bearish reversal. Moustache predicts a breakout could occur within weeks.
“A monster pump is long overdue for altcoins.”
Bitcoin Dominance Could Delay Altcoin Rally
Bitcoin’s dominance (BTC.D) has risen to over 60%, which typically suppresses altcoin growth. However, Benjamin Cowen, CEO of Into The Cryptoverse, noted that Bitcoin, Ethereum, and stablecoins collectively hold 80.51% market dominance, a level that previously preceded altcoin rallies in 2020 and 2023.
“The altcoin market rallies when Bitcoin dominance declines.” Cowen explained, adding that patience may be needed as a full-fledged altcoin season could take shape in 2025. For now, the Altcoin Season Index, a metric by Blockchain Center, sits at 31—indicating that altcoins are gradually gaining strength.
The Altcoin Season Index, which tracks whether altcoins outصحابperform Bitcoin, recently rose to 31 from less than 25. For a true altcoin season, at least 75% of the top 50 cryptocurrencies must outصحابperform Bitcoin. Currently, only 30% of them, including Sui (SUI), Fantom (FTM), and Dogecoin (DOGE), have achieved this. However, the rising index suggests momentum is building.
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