Cryptocurrencies are gaining momentum in the market, particularly focusing on “altcoins” as a bullish trend emerges. The total capitalization of cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH) has broken out of a downtrend, hinting at the beginning of an altseason.
A comprehensive evaluation by Finbold of TradingView’s TOTAL3 crypto index, which combines the market cap of all cryptocurrencies except BTC and ETH, reveals a strong momentum with a capitalization of $614.64 billion, breaking the six-month downtrend.
TOTAL3 has seen three consecutive lower highs since late March 2024, as it faced significant resistance. However, the index managed to break this resistance on September 24 after testing the downtrend line from September 21 to 23.
While Bitcoin and Ethereum are facing downtrends of their own, the emergence of an altseason is indicated where mid and small-cap coins outperform the larger caps.
It is crucial to note that caution is advised as the altcoins’ market cap must stay above the previous resistance level to establish support after the first daily closure above the downtrend line. Additionally, technical indicators, such as the potential bullish golden cross between the 30-day exponential moving average and the 180-day EMA, further support the altseason theory.
Renowned analysts, trading experts, and crypto commentators also foresee an altseason on the horizon, with indicators like a downtrend breakout in the “crypto total market cap excluding top 10” emphasizing this trend.
Alan Santana displays a bullish inclination towards mid and small-caps while expressing a bearish bias towards Bitcoin, Ethereum, Solana (SOL), Celestia (TIA), and other popular coins, highlighting the potential in smaller Altcoins at the moment.
As the altseason approaches, investors are encouraged to exercise caution and build a well-thought-out portfolio to navigate the increasing price volatility and risks associated with short-term speculation in the upcoming weeks.