Altcoin Market Cap to $4 Trillion? Total 2 Chart Shows Bullish Breakout

• Global Liquidity Index has reversed for the first time in four years, suggesting altseason.
• Bitcoin dominance is still above 60%, further delaying the altcoin season. 
• Analysts predicted that altcoin season will begin in April while Crypto Rover said that it has begun.

Crypto Rover, a well-known analyst in the crypto space, has shared a chart on X that hints at the beginning of the highly anticipated altcoin season, often referred to as altseason. 

The chart highlights a historical pattern, showcasing a cyclical trend where altcoin dominance tends to surge after a prolonged period of accumulation. Interestingly, similar patterns were observed in 2017 and 2021, both of which preceded significant, rapid rallies in altcoin prices.

The chart illustrates a consistent structure where altcoins typically establish a price floor before making an explosive move upwards. 

According to the analysis, the current market conditions bear a striking resemblance to these previous altseason setups, suggesting that we might be at the cusp of another substantial run for altcoins.. 

However, for a more definitive confirmation, traders are being advised to keep an eye out for sustained upward momentum in altcoin dominance, accompanied by a noticeable increase in trading volumes.

Altseason Catalysts

Another analyst, @oxlofty, has pointed out a potentially significant catalyst: the Global Liquidity Index has reversed for the first time since 2021. Historically, this type of reversal has often correlated with bullish movements across the cryptocurrency market. 

This analyst is even predicting that altseason will kick off “next week,” while also forecasting a dramatic surge for Bitcoin to $350,000 and an even more eye-popping 100x pump for lower-cap cryptocurrencies. While Bitcoin reaching $350K in the short term might seem like a long shot to some, an increase in overall market liquidity could indeed provide the necessary fuel for altcoins to experience a significant rally.

What Does Bitcoin Dominance Tell Us?

If Bitcoin dominance starts to decline while Bitcoin itself maintains its upward price trend, this could signal a rotation of capital from Bitcoin into altcoins, which is often considered a key indicator of a true altseason. 

According to data from CoinMarketCap, Bitcoin’s dominance in the overall crypto market is still above 60%, while the CMC Altcoin Season Index currently sits at a value of 17. 

Changpeng Zhao, the founder of Binance, a reading closer to 50 would be a strong indication of an impending altcoin season. 

Total 2 Chart Analysis: Bullish Signs for Altcoins?

Another bullish outlook comes from @CryptoELITES, who predicted that April and May will be incredible months for cryptocurrencies. This analyst shared a Total 2 chart, which tracks the total market capitalization of all altcoins, excluding Bitcoin.

The chart shows what appears to be a rounded bottom formation, followed by an attempt to break out. 

Key Fibonacci retracement levels on the chart suggest that the next major resistance levels for altcoins lie between $2.53 trillion and $4.15 trillion. If altcoins can maintain their current upward momentum, a sharp rally towards these levels could potentially unfold in the coming months.

The chart also indicates that altcoins have recently bounced off significant support levels and are now forming a cup-and-handle pattern, which is widely recognized as a bullish technical structure. 

If this pattern plays out as expected, we could see a rapid increase in the valuations of altcoins, particularly in the mid and lower-cap asset categories.