Altcoin Season Expected to Begin by November's End as Market Enters Crucial Breakout Stage

The altcoin market is now in the early stage of a crucial breakout. The technical indicators show a significant rally that may be the beginning of the altcoin season.

The altcoin market is on the cusp of a major breakout, with technicals pointing to a possible start of altcoin season.

Market analyst MikybullCrypto has observed a cup-and-handle pattern on the altcoin’s total market capitalization chart, a formation typically viewed as a bullish signal. This breakout suggests an increase in the altcoin market cap to $2 trillion by late 2025, with currentالاتشير إلى ارتفاع سقف السوق.

Cup and Handle Pattern Signals a Bullish Breakout

The cup-and-handle formation marks a two-year recovery from the bearish phase that began in early 2022. The cup shape at the bottom signifies a sustained buildup and recovery in the market, while the handle formation during consolidation indicates an upcoming breakout.

Having already crossed the $820 billion market capitalization level, the next leg up in the altcoin market has begun. If the breakout holds, we can expect to see a 181.6% surge in the altcoin market, setting the stage for one of the biggest rallies in recent times.

Moreover, this bullish outlook on altcoins aligns with the increasing participation of investors in the market, highlighting the potential for growth in most altcoins.

Altcoin Dominance Shows Shift in Momentum

The altcoin market is showing strength with a gradual shift in dominance, indicating a rising trend for altcoins other than Bitcoin and Ethereum in the Crypto Total Market Cap Excluding the Top 10 Dominance metric.

This dominance has surged to 9.67%, placing it well above a descending trendline that has acted as a resistance line since early September.

The breakout highlights a sustained investor interest in smaller altcoins, which is now being pegged as a sign of a new altcoin season. The altcoin dominance is seen trading around 9.80% levels, finding the next resistance at 10.50%.

If these levels are crossed, we can expect to see small-cap cryptocurrencies potentially driving the market growth. On the lower side, the dominance has support at 9.30%, with 9.00% being the second level of support.

The Relative Strength Index (RSI) is currently at 57.45, indicating increasing bullish pressure without being in the overbought zone. This suggests that there is still potential for the asset to grow before a correction occurs, which again supports a bullish outlook on small-cap assets.

Altcoin Season Anticipated to Begin by November End

This aligns further with the market sentiment and historical price movement, suggesting the start of an altcoin season from November next year to March the following year.

During this period, we can expect altcoins to outperform larger coins like BTC and ETH due to a shift in capital from the larger-cap coins.

Historically, altcoin seasons have occurred during a bullish run when altcoins tend to perform better than the top cryptos once the BTC price stabilizes. However, the projected altcoin market cap of $2 trillion is based on the depth of the cup-and-handle pattern, a technical setup known for its high accuracy.

Key Levels to Watch

On the higher side, the dominance levels are seen reaching 10.50%, with the market capitalization aiming for $2 trillion, indicating a further breakout by small-cap altcoins.

However, a bearish scenario may unfold if the breakout fails to hold, leading to a potential retracement. Any support level above $600 billion is considered relatively safe as it provides firm support to the market in case of a price pullback.