Key takeaways:Altcoins cup-and-handle pattern projects a rise to $2.78 trillion market cap, hinting at an altcoin season.Bitcoin dominance below key moving averages suggests altcoins may outperform in the near term.According to crypto traders, many altcoins are currently displaying some bullish patterns that suggest its altcoin season as Bitcoin dominance begins to drop.Altcoins eye phenomenal rally to $2.78 trillionIn the latest altcoin analysis, trader Jelle highlights a breakout from a highly bullish continuation cup-and-handle setup forming on the TOTAL3/USD weekly price chart.TOTAL3 refers to the combined market capitalization of all cryptocurrencies excluding Bitcoin (BTC) and Ether (ETH).Related: Theres more to Ripple than the XRP Army: Why the altcoin is a good tradeA break above the neckline of the pattern at $1.1 trillion could push TOTAL3 up by about 100% to $1.98 trillion.Altcoins have broken out from the multi-year cup and handle! the trader said in a Thursday post on X, adding:One last hurdle to overcome, but once this clears $1.1 trillion, everything goes nuts.TOTAL3/USD weekly chart.
Source: JelleVeteran trader Peter Brandt observed a similar setup on TOTAL2, or the combined market capitalization of all cryptocurrencies excluding Bitcoin, on the weekly candle chart.
The measured target of this pattern is $2.78 trillion, or a 97% rally in the total altcoin market cap.Responding to the breakout, Brandt said:It's altcoin season.Jelle and Brandts bullish outlooks come as altcoins posted their strongest performance against Bitcoin since late November 2024, breaking out of a multimonth downtrend as observed by analyst Stockmoney Lizards.TOTAL3/BTC daily chart.
Source: Stockmoney LizardsFueling the altcoin rally is Ethers 24% performance over the last seven days, suggesting capital rotation from Bitcoin as other cryptocurrencies play catch-up.ETH is trading at $3,400.
Thats how fast things can go, said MN Capital founder Michael van de Poppe, adding:These six months are going to be phenomenal for Altcoins.Is Bitcoin season ending?Bitcoin dominance, or Bitcoins market share relative to the overall crypto market, is one of the indicators commonly used to indicate whether altseason has begun.
It reflects overall investor sentiment and risk appetite in the market.This indicator had been on a downward trend since June 27, reaching an eight-week low of 62.61% on Thursday.Bitcoin dominance daily chart.
Source: Cointelegraph/TradingViewAs Cointelegraph reported, several analysts said Bitcoins market dominance had reached its peak as altcoins continued pushing higher.Popular crypto analyst Mikybull Crypto said, Bitcoin dominance is dumping as it breaks below the critical support provided by the 50-day simple moving average (SMA) at 64.78% and the 100-day SMA at 64.38%.Massive for altcoins.Bitcoin dominance is breaking down slightly but has a long way to go to confirm a larger turnaround is due, said Daan Crypto Trades, suggesting that it might be too early to call an altseason.For example, Blockchain Centers altcoin index has more than tripled since June 22.
But it is still only 39% of the top 50 altcoins that have outperformed BTC during the last three-month period, far from the 75% needed for an official altcoin season.Altcoin season index.
Source: Blockchain CenterThis 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.