The BTC dominance charts, which show a downward trend, could be a sign that the long-awaited "altcoin season" has finally arrived.
Key points:
The "cup and handle" pattern of the altcoins projects a rise to $2.78 trillion in market capitalization, indicating an "altcoin season."
That Bitcoin's dominance being below key moving averages suggests that altcoins could outperform in the short term.
According to cryptocurrency traders, many altcoins are currently showing some bullish patterns suggesting that "it's altcoin season," as Bitcoin's dominance begins to decline.
In the latest altcoin analysis, trader Jelle highlights a breakout from a very bullish continuation cup and handle setup forming on the weekly price chart of TOTAL3/USD.
TOTAL3 refers to the combined market capitalization of all cryptocurrencies except Bitcoin.
A breakout above the neckline of the pattern at $1.1 trillion could propel TOTAL3 by around 100%, up to $1.98 trillion.
"Altcoins have broken the cup and handle of several years!", said the trader in a post on Thursday on X, and added:
"There is one last hurdle to overcome, but once the $1 trillion mark is surpassed, everything will go crazy."
Weekly chart of the TOTAL3/USD pair. Source: Jelle
Veteran trader Peter Brandt observed a similar setup in TOTAL2, or the combined market capitalization of all cryptocurrencies except Bitcoin, on the weekly candlestick chart.
The measured target of this pattern is $2.78 trillion, which represents a 97% surge in the total market capitalization of altcoins.
In response to the breakout, Brandt said:
"It's altcoin season."
