Analysts suggest the cryptocurrency market is entering an “altcoin season,” where altcoins are displaying bullish price patterns that could push their collective market capitalization to record levels.

Altcoins target 97% surge to $2.78 trillion

According to trader Jelle, altcoins have broken out from a multi-year cup-and-handle pattern on the TOTAL3/USD price chart. This pattern could enable an approximately 100% rally up to $1.98 trillion if the $1.1 trillion resistance level is breached.

“Altcoins have broken out from the multi-year cup and handle! One last hurdle to overcome, but once this clears $1.1 trillion, everything goes nuts.”

The ultimate target for the pattern is an astronomical $2.78 trillion market cap for altcoins, representing a 97% rally, according to veteran trader Peter Brandt.

“It’s altcoin season.”

This market movement follows the strongest performance against Bitcoin since November 2024. Ether’s impressive 24% performance over the past week has contributed significantly to the altcoin momentum.

“ETH is trading at $3,400. That’s how fast things can go.”
“These six months are going to be phenomenal for Altcoins.”

Bitcoin dominance enters downtrend

The traditional indicator for a potential altcoin season — Bitcoin’s dominance — is exhibiting downward momentum. Bitcoin dominance reached an eight-week low of 62.61% on July 17th.

Analysts view this as a significant market shift:

• Bitcoin dominance is breaking below critical 50-day and 100-day moving averages
• Only 39% of top 50 altcoins have outperformed Bitcoin in the last three months (far from the 75% threshold for an “official” altcoin season)

While some analysts see this as confirming a genuine altcoin season, others caution that Bitcoin dominance still has significant room to fall before confirming a lasting market reversal.

Market Structure & Performance

The altcoin rally is reflected across the broader cryptocurrency ecosystem:

• Altcoin index has more than tripled since June 22nd
• Daily trading volume shows rising altcoin liquidity
• Multiple technical patterns suggest continued upside potential across various altcoin tiers