In the world of cryptocurrencies, a bullish wave is emerging, particularly for alternative coins or “altcoins.” Recently, the combined market value of all cryptocurrencies except Bitcoin (BTC) and Ethereum (ETH) broke out of a downward trend, marking the beginning of what could be an altseason.
Based on an analysis of the TOTAL3 crypto index from TradingView, which represents the total market capitalization of altcoins excluding Bitcoin and Ethereum, there has been a strong surge with a capitalization of $614.64 billion. This surge signifies a break from a six-month downtrend that had been observed.
Interestingly, while Bitcoin and Ethereum are grappling with their own downward trends, there are indications that an altseason might be underway. An altseason typically refers to a phase in the cycle of the cryptocurrency market where mid and small-cap coins outshine the larger players.
It is crucial to note that for the altcoins to confirm this upward trend, sustained support above the previous resistance level will be necessary. Additionally, technical indicators such as the 30-day exponential moving average approaching the 180-day EMA suggest a potential bullish trend, validated further if the volume increases.
Renowned analysts and experts are also predicting the onset of an altseason. Notably, Ali Martinez and Alan Santana have shared their insights, with Martinez specifically pointing out a break in the downtrend of the total crypto market cap excluding the top 10 coins.
Like in any investment market, caution is advised as surprises are always a possibility. As the altseason unfolds, preparing a strong investment portfolio and having a clear strategy will be vital to navigating the market’s heightened volatility in the coming weeks.