The altcoin market cap is closely following the 2017 breakout model, and the Bitcoin dominance is about to crash. The ETH/BTC pair is also at a historically critical level, which was followed by a huge altseason in 2017. As all the signals are pointing to an approaching altcoin, analysts expect the altcoin market cap to hit $6 trillion.
Altcoin market cap imitates 2017 breakout model
According to market analyst Moustache, the altcoin market is mirroring its 2017 breakout. The previous altcoin season setup started with the formation of the cup and handle pattern, and then once the handle was completely formed, there was a drastic spike that skyrocketed the market cap.
Although the handle is longer with the current setup, the altcoin market is closely following the same structure. As such, there could be a huge breakout, and according to the analyst, the entire altcoin market cap could hit $6 trillion.
In a cup and handle pattern, the market goes through a quiet reset phase where selling pressure gradually fades and buyers begin to regain control. During the cup, price forms a rounded bottom as weak hands exit and stronger participants accumulate at lower levels, restoring balance and confidence.
As price approaches prior resistance, the handle forms – a brief consolidation or shallow pullback that shakes out late buyers and absorbs remaining supply. Volume typically contracts during this phase, signaling reduced selling interest.
If demand continues to build, price eventually breaks above resistance with expanding volume, confirming that buyers have absorbed supply and momentum is ready to continue higher.
Bitcoin dominance about to dump
Another important event that happens before the altcoin season kicks in is that the Bitcoin dominance usually falls. And just like the altcoin market cap is closely following the 2017 breakout model, the Bitcoin dominance is also following the 2021 dump pattern.
It starts with testing resistance on the higher time frames, not once, but thrice. But all three attempts result in failure. After this, the BTC dominance crash follows.
ETH/BTC pair about to break out
Another classic signal is visible on the ETH/BTC pair chart. The below chart shows that the ETH/BTC pair is just below the 50-day moving average.
Historically, when it’s time for the altcoin season, the ETH/BTC pair, which remained below the 50-day MA, shoots up, and ETH gains value against BTC exponentially. This happened in 2017 and even in 2021, and currently, the same setup is seen on the chart. As such, the altcoin season might be around the corner.
