Full Blown Altcoin Season Can Kickstart Soon With This Decisive Breakout

Following the easing of the US-China trade tensions on Sunday, Bitcoin and the broader crypto market have staged a strong upside today. Altcoins, led by Ethereum (ETH), have also participated in the rally, raising hopes for a potential altcoin season. Technical chart suggests that a full-blown altseason is in the making if bulls retain control over the market.

Altcoin Season Chances Rise As Bitcoin Dominance Hits Top

Crypto trader Merlijn the Trader has suggested that an altcoin season may be imminent. He noted that Bitcoin dominance (BTC.D) is once again testing a historical resistance level.

According to the trader, each previous rejection from this resistance zone has triggered strong rallies across altcoins, marking the start of past altcoin market cycles. Merlijn added that current market conditions appear to be setting up a similar scenario. He also stated that “altcoin season starts when nobody expects it,” and that “this cycle is no different.”

Additionally, Merlijn also believes that altcoins are entering a critical “decision zone”, signaling a potential turning point for the market.

According to the trader, the altcoin market has endured months of sideways movement, leading many retail investors to lose interest in it. However, he emphasized that “structure never lies,” noting that previous altcoin seasons began under similar market conditions.

Analyst Merlijn also added that major breakouts tend to occur when market doubt is at its highest. Thus, he suggested that the current setup resembles the same zone that preceded the last two altseasons.

Altcoin Market Cap Eyes a Potential Breakout Like 2020

Crypto analyst Michael van de Poppe states that the market is experiencing the longest and most painful bear phase for altcoins in history, spanning nearly four years. Despite widespread pessimism, he believes the altcoin market is now on the verge of a major resurgence.

Van de Poppe argued that comparing the current market cycle to previous ones “makes no sense,” as this cycle has behaved very differently. He cautioned that investors expecting the same 1,000% gains seen in the last cycle will likely be disappointed unless they take exceptional risks. “To have an outrageous return of 1,000%, you’ll need to make outrageous decisions and be that 0.1% compared to the rest of the world,” he said.

The analyst emphasized that this could be the final “easy” crypto cycle, with accelerating adoption, mispriced markets, and new participants still entering the space. Using the OTHERS/BTC chart and key indicators such as RSI and MACD, Van de Poppe compared the current setup to that of late 2019 or early 2020. Poppe added that MACD is showing signs of a potential bullish reversal after two years of negative momentum.

Crypto analyst van de Poppe also stated that the red MACD bars, which have been present since late 2021, are about to turn green, signaling growing strength. “This is, by definition, the best chart in the ecosystem,” he wrote, adding that widespread negativity toward altcoins often marks a prime accumulation phase.

Van de Poppe concluded that investors should focus on blue-chip altcoins and hold through the coming year to position themselves for significant returns.

Altcoin Season to Kickstart In the First Week of November

Crypto analyst Ted Pillows noted that altcoins are exhibiting a pattern similar to that of late 2024. Back then they moved sideways for several weeks following the September rate cut. He pointed out that, during that period, altcoin prices began rallying in the first week of November, suggesting the market could be setting up for a similar move this year.

Multiple indicators are pointing to a potential altcoin season on the horizon. Furthermore, the upcoming Fed rate cut this week, along with a strong settlement in US-China trade talks, could trigger a risk-on sentiment ahead.