Bitcoin News Today: Altcoin Market Surges 30% as Altseason Signals Emerge

The altcoin market is experiencing a significant surge, with technical indicators suggesting a major shift in market dynamics. Analysts are now suggesting that a potential altseason is unfolding, as altcoins regain momentum and investor confidence returns. Two key charts from el_crypto_prof and Merlijn The Trader highlight a surge in altcoin strength not seen in years.

The TOTAL2 index, which excludes Bitcoin, has reclaimed an eight-year trendline. This trendline has acted as a strong base during multiple market cycles, notably in 2020 and 2023. Recently, the TOTAL2 chart closed a bi-weekly candle above this level, indicating that buyers are stepping back in. As a result, the market capitalization of all altcoins increased by almost 30% to approximately $1.49 trillion. This breakout represents a change in investor attitude and indicates that long-term support is still in place, providing bulls with new motivation to rejoin the market.

Meanwhile, analyst Merlijn The Trader noted that Glassnode’s altseason indicator has flipped bullish. This tool compares the altcoin market’s short-term and long-term trends. The pink 7-day moving average just crossed above the 30-day blue line. Historically, this has aligned with explosive altcoin rallies. The recent crossover was confirmed with a sudden spike in total altcoin capitalization, nearing $700 billion. Bitcoin still holds firm above $110,000. However, the momentum appears to be shifting toward altcoins.

This same setup predicted prior altcoin surges in late 2024 and early 2025. Hence, many traders now believe another wave is likely forming. Altcoins tend to outperform when risk appetite increases. This pattern often emerges when investors rotate profits from Bitcoin into smaller assets. With multiple signals aligning again, analysts suggest the next big rotation may already be underway. Bitcoin dominance weakens as traders rotate funds into altcoins, a pattern seen in previous surges during high-risk market phases.