Analysts Spot Key Technical Signals Suggesting Potential Altcoin Season Revival

A confluence of technical indicators across the altcoin market is drawing comparisons to the pre-bull phases of 2017 and 2021, sparking debate among analysts about a potential major rotation into altcoins. The TOTAL3 chart, which tracks the total market capitalization of all cryptocurrencies excluding Bitcoin (BTC) and Ethereum (ETH), is showing a significant pattern: its Moving Average Convergence Divergence (MACD) indicator has returned to the same bottoming zone observed just before the explosive altcoin seasons of the past two major cycles.

The technical setup is multi-faceted. The TOTAL3 chart shows price compression within a large multi-year wedge pattern, with the market pressing against a long-term diagonal resistance line that previously capped rallies in 2017 and 2021. A breakout above this resistance could trigger a significant expansion. Separately, the ETH/BTC pair has broken above a descending trendline that persisted for approximately three and a half months, a move analysts interpret as a bullish signal for altcoin momentum given Ethereum's traditional role as a market bellwether.

Further supporting the bullish case, the "Others/BTC" dominance chart—measuring altcoins excluding BTC and ETH—is sitting at a historic long-term support level. This same level triggered major rallies in 2019 and 2020. On a macro scale, the total cryptocurrency market capitalization is displaying a confirmed double "cup-and-handle" formation, a bullish continuation pattern with a projected target as high as $6.5 trillion.

Analysts, including traders Moustache and Bitcoinsensus, note that while these signals do not guarantee a repeat of history, the alignment is striking. They highlight that market sentiment often remains skeptical at such cycle turning points, which has historically been a feature of early-stage reversals. The consensus among observing traders is that the groundwork for a shift in capital rotation from Bitcoin into higher-beta altcoin assets may be forming, potentially setting the stage for a new altcoin season if key resistance levels are decisively broken.