Bitcoin's declining dominance charts may be a sign that the long-awaited "altcoin season" has finally arrived, analysts said.
According to cryptocurrency traders, many altcoins are currently showing some bullish patterns that suggest it is "altcoin season" as Bitcoin's dominance begins to fall.
In the latest altcoin analysis, trader Jelle highlights a breakout of a highly bullish continuation cup and handle setup forming on the weekly price chart TOTAL3/USD.
TOTAL3 refers to the combined market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum.
A breakout above the neckline of the pattern at $1.1 trillion could propel TOTAL3 approximately 100% to $1.98 trillion.
"Altcoins have overcome the multi-year crisis!" said the trader in a post on Thursday on X, adding:
"There is one last hurdle to overcome, but once we surpass $1.1 trillion, everything will go wild."
Veteran trader Peter Brandt observed a similar setup in TOTAL2, or the combined market capitalization of all cryptocurrencies excluding Bitcoin, on the weekly candlestick chart.
The measured target of this pattern is $2.78 trillion, or a 97% increase in the total market capitalization of altcoins.
In response to the leak, Brandt said:
"It is altcoin season."
Jelle and Brandt's bullish outlook arises as altcoins recorded their strongest performance against Bitcoin since late November 2024, breaking a multi-month downtrend as analyst Stockmoney Lizards observed.
What is driving the altcoin rally is Ether's 24% performance in the last seven days, suggesting a capital rotation from Bitcoin as other cryptocurrencies try to catch up.
"ETH is trading at $3,400. That's how quickly things can go," said Michael van de Poppe, founder of MN Capital, adding:
"These six months are going to be phenomenal for altcoins."
