Cryptocurrencies are heating up as a bullish momentum grows in the cryptocurrency market, especially around what is known as “altcoins.” The total capitalization of all cryptocurrencies except Bitcoin (BTC) and Ethereum (ETH) broke out of a downtrend, signaling an altseason is starting.
Finbold looked at TradingView‘s TOTAL3 crypto index, summing up the market cap of all cryptocurrencies excluding the two leaders. With a $614.64 billion capitalization, the altcoins are starting a strong momentum, breaking out of a six-month downtrend.
Notably, TOTAL3 made three subsequent lower highs since the 2024 highs in late March, creating significant resistance. The index tested this downtrend line from September 21 to 23, breaking out the resistance on September 24.
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Meanwhile, Bitcoin and Ethereum struggle inside of their own downtrends, suggesting an altseason could have just started. An altseason describes a phase in the cryptocurrency market cycle where mid and small-cap coins massively outperform the large caps.
Is an Altseason starting?
However, this was the first daily closure above the downtrend line, which still requires caution and further validation. The TOTAL3 altcoins’ market cap must hold above the previous resistance level, converting it to support.
Indeed, other technical indicators strengthen the altseason theory. For example, the 30-day exponential moving average (EMA) approaches the 180-day EMA, getting ready for a bullish golden cross.
The trend shift could be validated if the monthly moving average crosses the six-month indicator upwards with an increased volume.
Crypto Busy spotted the same break out in the TOTAL3 index, saying an “Altseason is coming.”
Analysts forecast an altseason
Interestingly, renowned analysts, trading experts, and crypto commentators appear to share a similar opinion, forecasting an altseason is starting.
For example, Finbold reported Ali Martinez’s warning that an “altcoin season is just around the corner.” For this analysis, Martinez was looking at a downtrend break out in the “crypto total market cap excluding top 10.”
Alan Santana has also been showing a bullish bias toward mid and small-caps despite doubling down on a bearish bias toward Bitcoin, Ethereum, Solana (SOL), Celestia (TIA), and a few other more popular coins.
“The smaller Altcoins of course are a different game right now and these are bullish because they already hit bottom. But these bigger projects move together with Bitcoin.”
– Alan Santana
On Finbold, investors can find insights on promising altcoins, although caution is needed as the market can bring surprises. Some recent reports include a “10x” or even a “50x” potential for this year’s bull run or technological fundamental analyses.
As an altseason approaches, price volatility might increase and, therefore, the risks attached to short-term speculation. Building a solid portfolio and having a clear strategy are essential to navigate the market in the following weeks.
