Altcoin News: Altcoin Market Poised for Potential Upsurge Amid Key Technical Signals
According to Cointelegraph: The altcoin market, facing a downward trend since the March 2024 bull run slowdown, is now showing signs of a potential uptrend. Technical indicators reveal that the cumulative market cap of altcoins, represented by TOTAL2 (excluding Bitcoin), remains supported above an ascending trendline originating from the 2017 bull cycle. Crypto analyst Mags highlighted on Oct. 26 that TOTAL2 is currently testing multi-year trendline support, an indicator suggesting that the market downtrend could be waning. With increased buying at this level and BTC’s own breakout, the broader crypto market seems set for a significant upward move.Bitcoin Resistance & TOTAL2 Trendline Support: A Key CrossroadAt the time of publication, Bitcoin is challenging resistance at its 2021 all-time high near $69,000. A firm close above this level, coupled with TOTAL2’s continued to hold above the critical trendline support, may confirm a robust uptrend across the market. Fellow analyst Moustache observed that TOTAL2 might break out within 1-2 weeks from a descending broadening wedge pattern. A recent drop in TOTAL2 from $981 billion to $873 billion could be a temporary deviation before a potential reclaim of the trendline support.Bitcoin Dominance & Altseason ProspectsCurrently, Bitcoin dominance is at 59.56%, sustaining its lead since early 2023. This “Bitcoin season,” as it is often called, sees altcoins generally underperforming compared to BTC. However, crypto YouTuber Crypto Banter anticipates an “altseason” surge if Bitcoin dominance drops significantly. Analyst Yoddha points out that Bitcoin dominance may be forming an ascending wedge, hinting at a near-term altcoin rally. Meanwhile, Crypto Rover echoes that BTC dominance could decline soon, setting the stage for an alt season phase.The Road to Altseason: Key Levels to WatchWith only 29% of the top 50 altcoins outperforming Bitcoin over the past three months, the conditions for a classic altseason are not yet in place. For an official “altszn,” roughly 75% of altcoins must surpass Bitcoin’s performance. However, as Bitcoin tests new highs, a TOTAL2 breakout, alongside reduced Bitcoin dominance, could lead to an alt season in the coming months, creating new opportunities for altcoin investors.