Technical analysts are highlighting compelling chart patterns that suggest altcoins may be on the verge of a significant breakout against Bitcoin, potentially heralding the start of a major altcoin season. According to analyst Javon Marks, the total altcoin market capitalization relative to Bitcoin is holding a "MAJOR BREAKOUT" after years of consolidation. His analysis tracks a ratio chart from 2018 to 2027, revealing two major descending triangle formations.
The first triangle, which peaked in 2018, consolidated through 2019 before a powerful breakout in mid-2020 led to a strong rally in 2021. Marks points out that a second triangle formed after the 2021 peak, characterized by lower highs and strong horizontal support. This pattern saw its falling resistance line broken in late 2024 or early 2025, establishing the initial stages of another positive trend for altcoins versus Bitcoin.
Volume trends further confirm the bullish setup. During both consolidation periods, trading volume gradually declined, reflecting market indecision before major directional moves. When breakouts occurred, price momentum accelerated as trapped capital rushed in, suggesting altcoins may replicate past performance with sustained upward moves relative to Bitcoin.
Adding to the bullish thesis, another analyst highlights a massive falling wedge pattern on the altcoin price chart that has been forming for over 4.5 years. A breakout from this pattern is seen as a precursor to "monumental" altcoin price pumps. This technical outlook aligns with the "5-year supercycle" theory promoted by analysts like Raoul Pal and Tom Lee of Fundstrat, who suggest Bitcoin, Ethereum, and altcoins could hit new all-time highs in 2026.
For practical investment strategy, analyst Stockmoney Lizards recommends focusing on established altcoins like INJ, HYPE, XMR, and BCH rather than chasing meme tokens. He advises dollar-cost averaging below key levels, scaling positions carefully, and maintaining a "moon bag" for potential windfall gains. "I don’t want to sound like a broken record, but fortunes are built at the bottom," Lizards said.
