Bitcoin News Today: Altcoin Index Nears $1.37 Trillion Resistance Amid Signs of Market Shift

Altcoins are approaching a pivotal resistance level that could trigger a major market shift. The Altcoin Index, which tracks the performance of cryptocurrencies beyond Bitcoin and Ethereum, is currently hovering near $1.37 trillion — a level that previously signaled the end of previous bull cycles before the 2022 downturn [1]. Analysts suggest this is a critical decision point, where a sustained breakout could confirm the start of a new rally phase.

Historically, the altcoin market has followed a recurring pattern of accumulation and breakout. Between 2018 and 2020, altcoins consolidated around $30–$40 billion before surging in late 2020, eventually reaching a peak of $1.4 trillion in 2021 [1]. This cycle appears to be repeating, with the index now consolidating near $305 billion and showing signs of building momentum [1]. Analysts predict that a move beyond $400 billion to $500 billion would confirm the start of a third altseason, mirroring previous patterns from 2014–2016 and 2018–2020 [1].

The potential for a new altseason is further supported by weakening Bitcoin dominance. As Bitcoin's share of the total crypto market dips below 60%, altcoins are gaining traction. This trend was evident in late 2023, when the altcoin index surged past $1.1 trillion [1]. If this pattern holds, a continued decline in Bitcoin’s dominance could lead to a more balanced distribution of investor capital and increased activity across the altcoin space [2].

Ethereum has also been a key driver in the current buildup. With ETF inflows and growing institutional interest, the second-largest cryptocurrency is approaching the $4,000 psychological resistance level [2]. A breakout from this level could trigger broader altcoin participation and reinforce bullish sentiment. Meanwhile, XRP has struggled to maintain momentum after failing to push beyond its January peak, creating a key support zone that traders are monitoring [3]. Whale activity has increased in response to the recent correction, suggesting some market participants view this as an entry point [3].

Chainlink (LINK), on the other hand, shows mixed signals. A strong weekly rally brought the token to $24.40, but it has since stalled, indicating buyer interest is still cautious [4]. For altcoins to break out, sustained support from both institutional and retail investors is essential. Market analysts have noted that if Bitcoin’s dominance continues to fall and Ethereum breaks through key levels, the broader altcoin market could enter a new phase of expansion [2].

The current phase remains volatile, with divergent performances across the altcoin spectrum. Some coins have held key support levels, while others have struggled to gain traction. This suggests the market is in the early stages of a potential rally, with only the strongest names showing consistent resilience [5]. Investor sentiment appears to be shifting in favor of altcoins, but caution is still warranted given the mixed signals and high volatility.

If the Altcoin Index successfully breaks through the $1.37 trillion resistance, it could signal a broader market shift. A more balanced allocation of capital between Bitcoin and altcoins would likely follow, with Ethereum and other top altcoins leading the charge. This scenario, however, would require sustained buying pressure and favorable macroeconomic developments in the crypto space [7].

Source:

[1] https://cryptofrontnews.com/altcoin-index-faces-crucial-resistance-that-could-spark-major-rally/

[2] https://www.mexc.co/fil-PH/news/65516

[3] https://thecryptobasic.com/2025/08/18/here-is-key-support-area-where-about-1704745581-xrp-could-stop-the-downtrend/

[4] https://www.xt.com/en/blog/community-news/2025-08-17T17:00:00.000Z

[5] https://coincentral.com/why-is-crypto-down-today-3/

[6] https://bravenewcoin.com/insights/xrp-price-today-xrp-correction-sparks-whale-activity-and-trading-opportunities

[7] https://coindoo.com/market/ethereums-etf-boom-vs-bitcoins-dominance-what-traders-should-watch/