The crypto market is showing early signs of a potential shift as altcoin dominance challenges a five-year downtrend. Technical indicators suggest momentum may be changing after years of lower highs and persistent weakness against Bitcoin.
The crypto analyst Crypto Patel is now watching closely as long-term resistance structures begin to weaken, hinting at a possible trend reversal phase.
A bullish MACD crossover on higher timeframes has intensified speculation of an incoming altcoin season. Historically, similar signals preceded strong capital rotations where altcoins delivered explosive gains of 10x–20x.
Source: Crypto Patel’s X Post
While confirmation is still required through sustained breakouts and volume growth, market sentiment is increasingly focused on the possibility of a major bullish expansion cycle.
Also Read: JasmyCoin (JASMY) Eyes of a $4.47 Breakout Amid Altcoin Season Hopes
However, another crypto analyst, Gordon, highlighted that the altcoin market may be approaching a key technical turning point as the weekly MACD nears a bullish crossover on total altcoin market capitalization.
This signal often reflects shifting momentum from consolidation to expansion. Traders are watching closely, as similar setups in past cycles have preceded strong upward trends across crypto markets.
Source: Gordon’s X Post
Historically, bullish crossovers of MACD in altcoins have usually been responsible for igniting major rallies. Ethereum’s price action has surged about 3.5x, while bigger-cap tokens remain between 4x and 5x. The smaller to medium-sized caps tend to outperform both groups, gaining anywhere from 5x to 10x.
Naturally, there are no assurances, but the recurring trends strongly suggest an increasing willingness to take risks and the onset of new altcoin cycles.
The 90-day Altcoin Season Index, tracking the total market capitalization of all altcoins versus the dominance of Bitcoin, indicates initially the market was floating near $1.3 trillion and was within the altcoin season territory, above 75.
The rapid drop at the beginning of February shattered the trend, resulting in an extended period of neutrality with a combination of trends and moderate power.
Source: CoinMarketCap
Market capitalization of altcoins remains around $1.0T despite the fall in index value to nearly 34. This is an indication of transitioning from a period of outperformance by altcoins to one that is more neutral.
At the moment, the curve resembles the strength of Bitcoin since the index lies just above the Bitcoin season threshold.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Avalanche (AVAX) Price Could Reach $126 If Altcoin Season Emerges
