Analyst Says this Mini-Altseason Will Help Recover 4-5 Month Losses

Key Insights:

• Analysts suggest potential altseason as market cap breaks key resistance levels.
• Altcoin market cap consolidation below ATH hints at possible upcoming breakout.
• Bitcoin dominance reversal signals capital shift toward altcoins, analysts predict.

Despite Bitcoin’s recent breakout above the $87,000 level and Ethereum reaching fresh local highs, most altcoins have yet to reflect the broader bullish sentiment. While optimism grows across the crypto landscape, a decisive altseason has remained absent.

Several technical indicators, however, are pointing to a possible shift. Analysts tracking the total crypto market cap and Bitcoin dominance patterns suggest conditions could soon align for a wider altcoin rally, pending key breakout signals and capital rotation dynamics.

Possible Altseason Looming?

One of the more prominent indicators comes from Captain Faibik, a market analyst on X, who charted the total cryptocurrency market capitalization, including Bitcoin, on a daily timeframe. The chart outlines a descending channel pattern stretching from November 2023 through April 2025.

This pattern reflects a prolonged downtrend across the broader market, driven by consistent lower highs and lower lows. However, recent price action has breached the upper boundary of the channel.

This breakout from the descending trendline marks a notable deviation from the prevailing bearish structure. The current movement points toward a potential bullish shift, which historically aligns with a period of altcoin strength.

The total market cap has also approached a critical resistance near $980 billion. Should this level convert into support, analysts project a rally toward the next resistance zone around $1.47 trillion. That level reflects an approximate 54.13% potential gain from current valuations.

Altcoin Market Cap Consolidates Below ATH

In a separate analysis, Shib Spain presented a comparative chart tracking the Altcoin Market Cap during two significant phases — the 2021 altseason and the ongoing 2025 cycle.

The 2021 segment highlighted a rapid expansion in the altcoin market, where capital surged following a phase of horizontal consolidation.

The chart noted a clear break above a previous all-time high, triggering a vertical rise from approximately $330 billion to $2.5 trillion.

On the opposite side of the chart, the current 2025 trend demonstrates a prolonged consolidation just below the former ATH level of roughly $2.8 trillion. According to Shib Spain’s analysis, this pattern typically precedes a breakout.

The chart illustrates the market steadily approaching resistance, mirroring the 2021 setup. A successful break above the previous peak could suggest substantial momentum building in the altcoin sector.

The chart also includes a projection arrow pointing well beyond the ATH level, suggesting the potential for expansion toward $20 trillion in total altcoin market capitalization. While the data does not indicate a timeframe, the structural setup shows that the current phase remains within a buildup range awaiting confirmation.

BTC.D Reversal Pattern Hints at Rotation

Another piece of analysis was provided by $0uL, who examined the Bitcoin Dominance (BTC.D) metric on the daily chart. This indicator measures Bitcoin’s market share relative to the total crypto market cap and often signals investor capital flow patterns.

The chart outlines an inverse 3-drive pattern, typically associated with reversals. The three peaks in Bitcoin dominance are progressively weaker, with the final peak forming below the previous two.

This configuration appeared following a consistent rise in dominance through February and March 2025. At its recent high, BTC.D reached the 64.35% resistance level, a historically significant threshold.

After hitting this level, the dominance dropped sharply, suggesting a liquidity grab before a trend reversal. The sharp retreat from this resistance supports the analyst’s projection of a potential decline in Bitcoin dominance toward 58%.

This expected reduction in dominance could correlate with a shift in capital toward altcoins. If confirmed, it may provide the conditions necessary for altcoins to gain market share, especially if Bitcoin begins consolidating.

From these three angles provided by Captain Faibik, Shib Spain, and $0uL, there is a general consensus of the current structure of the crypto market. The technical charts, with Bitcoin and Ethereum leading the cycle, indicates the likelihood of the altcoins to follow a similar path, although it is necessary for further confirmation.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.