Altcoins show strong signs of recovery as Bitcoin dominance drops and historical resistance levels signal a new altseason cycle.
The TOTAL3 chart reveals a bullish setup with rising trading volumes, suggesting growing investor confidence in altcoins.
Institutional and retail money is flowing back into altcoins as Bitcoin struggles at resistance, setting the stage for a broad rally.
Altcoins are flashing major bullish signals as market dynamics shift in their favor. Bitcoin dominance recently dropped from 65% to 62%, hinting at the start of a new altseason. Historically, such shifts have preceded explosive rallies in alternative cryptocurrencies. A key resistance line, last touched over four years ago, has once again been tested—signaling the onset of a familiar cycle. Every time this resistance was hit—in 2019, 2020, and 2021—altcoins followed with massive gains.
Source: Moustache
Besides, the TOTAL3 chart, which excludes Bitcoin and Ethereum, reveals a powerful accumulation pattern forming. The total market cap for altcoins now stands at $828.28 billion. Despite a minor 1.47% dip, the overall trend remains upward. The formation mirrors the August–November 2024 accumulation zone. That period preceded a strong altcoin breakout. Hence, market analysts expect a similar move in the coming weeks.
Strong Volume and Institutional Interest
Moreover, technical data supports the bullish outlook. Trading volume surged from 8.7 trillion to 11.8 trillion over two 13-bar periods. This reflects rising investor participation and renewed interest in alternative cryptocurrencies. Additionally, an upward trendline from 2023 remains intact. It connects key support levels and holds despite recent pullbacks.
Source: Sykodelic
Institutional interest is growing again. Market structure patterns indicate whales and funds are rotating into altcoins. Retail traders have also returned, drawn by lower entry prices and recent price surges in meme coins and low caps. Furthermore, Bitcoin has struggled to break the $75,000 resistance level. This creates space for capital to rotate into more speculative assets.
Technical Indicators and Market Sentiment
However, technical indicators still show mixed signals. Momentum appears neutral, yet support remains firm across major timeframes. Bitcoin's sluggish performance compared to altcoins strengthens altseason. If 75% of the top 100 coins outperform Bitcoin over 90 days, it officially confirms an altseason.
Consequently, traders now monitor TOTAL3 and Bitcoin dominance charts for final confirmation. These metrics often precede large-scale altcoin rallies. Hence, current levels represent a potential launchpad.
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