- Cup-and-handle pattern suggests the altcoin market could surge to $5.4T by 2026.
- Bitcoin dominance must fall below 54% for altcoins to gain broader market traction.
- Altseason delay tied to low liquidity, token unlocks, and pending macroeconomic shifts.
Altseason 3.0 may be on the horizon as technical indicators and market patterns suggest a shift toward altcoin dominance. The recent retest of multi-cycle support by the OTHERS/BTC chart has historically preceded major altcoin rallies, and analysts now anticipate that a similar surge may follow.
Bullish Pattern Supports Altcoin Market Expansion
According to analysis prepared by crypto market expert Gert Van Lagen, the altcoin market has formed a bullish cup-and-handle pattern on the bi-weekly chart. This pattern spans from early 2022 through mid-2025, with a gradual recovery forming the cup and a mild downward channel in 2025 acting as the handle.
Van Lagen explains that this pattern typically forms during consolidation periods and often leads to a breakout. The neckline of the cup-and-handle is positioned at $813.18 billion. A confirmed breakout above this level could push the total altcoin market valuation toward $5.4 trillion by 2026. This would represent an estimated 564% increase from current levels.
According to an observation by Cas Abbé, a Web3 growth manager, the delayed onset of altseason is linked to low liquidity and high token unlock volumes. However, conditions in late 2025 may support a breakout. He cites possible altcoin ETF approvals and policy shifts by the US Federal Reserve as contributing factors.
Market Liquidity and Bitcoin Behavior Are Key Factors
Bitcoin’s dominance in the crypto market currently limits altcoin performance. According to Nic Puckrin, CEO of Coinbureau, a drop in Bitcoin dominance below 54% is needed for altcoins to gain momentum. Bitcoin must also reach a new all-time high without absorbing total market liquidity.
Additionally, Abbé expects the Federal Reserve to begin interest rate cuts in mid-2025 and end quantitative tightening. These monetary changes could inject liquidity into the market and foster a risk-on environment.
At press time, the total crypto market cap stands near $3 trillion, with altcoins making up 36.1%. The altcoin season index remains low at 21. Based on previous market cycles, a breakout could follow the retest of the multi-cycle support shown on the OTHERS/BTC chart.
