The market capitalization of altcoins confirms that it has surged past important resistance levels and currently signals the beginning of altcoin season. Market analysts have supported the breakout of the bullish Cup-Handle pattern, which is a good sign for many altcoins to rise further. This is the beginning of significant bullish potential for altcoins, with a continued bullish forecast throughout 2025.
The Altcoin Market Breaks Important Resistance Levels
The total market value of altcoins excluding BTC and ETH recently broke through the crucial resistance level of $979.75 billion.
This aims to confirm the breakout of the Cup and Handle pattern, one of the strongest indicators of the next bullish move. This pattern indicates that after a round consolidation phase, the market will rise. Market analyst MikybullCrypto is confident that this breakout is bullish.
Based on these estimates, the market capitalization of altcoins will rise to $1.2 trillion or more, in line with its overall upward trend channel. The confirmation of this bullish trend will be determined by the market's ability to maintain prices above this breakout level.
Other technical indicators, including momentum indicators, also correlate with this bullish outlook. The moving averages have now crossed into the green zone, indicating that market strength has returned. This transition eliminates the previous correction phases seen in 2022 and early 2023, suggesting that the altcoin market is generally ready for the next bullish run.
Analysts Predict Historical Gains of Altcoin Season
Most analysts in the cryptocurrency market believe that there is a lot of potential in altcoins during this AltSeason. According to MikybullCrypto, the breakout formation of Cup and Handle is a confirmation that altcoins are entering a new growth cycle.
EGRAG Crypto also predicts that during this phase, there could be up to $627 billion flowing into altcoins. This is due to investors gaining confidence.
Many altcoins are predicted to make significant changes by 2025, and altcoins like Ethereum and other large-cap coins like XRP could have a chance for price increases in 2025. However, relative regulatory advances and increasing demand have drawn attention to XRP.
Other analysts also note that Ethereum is in a better fundamental position and may even surpass Bitcoin in the coming months.
Another analyst, Intuition, stated that AltSeason could accelerate after the next significant pullback of Bitcoin. The same has been observed in history, during this period, Bitcoin's dominance decreases allowing altcoins to grow.
However, Intuition further stated that what people may consider the first and easiest part of AltSeason is that investors must be careful not to become complacent during this phase.
Market Volatility: The Impact of Institutions and the Role of Bitcoin
Despite the optimistic sentiment, several factors could slow down or dampen the pace of AltSeason. Ki Young Ju, CEO of CryptoQuant, emphasizes that one can observe a shift in trends compared to previous cycles.
Unlike previous bull markets driven by retail, the current market is led by institutions and spot Bitcoin ETFs. These players may prefer to hold Bitcoin rather than inflate their capital into other altcoins, which could further slow the flow of money into the altcoin market.
However, Bitcoin itself remains a key factor in determining market conditions. Bitcoin's price recently peaked at $95,169.75 and continues to rise towards $100,000.
Market observers believe that stability in Bitcoin's price could act as a catalyst for the anticipated altcoin rally. Historically, altcoins have performed better during periods when Bitcoin consolidates after a major rally. This move could set the stage for significant capital flow into altcoins as 2025 approaches.