- The crypto market turned bullish following Donald Trump’s victory.
- Crypto analysts believe the altcoin market has flipped into positive mode.
- The altcoin market cap broke above crucial resistance last Wednesday.
The crypto market turned bullish following Donald Trump’s victory in the November 5 US presidential election. Crypto analysts consider the recent flip critical because of the notable signs it left on the crypto market, especially concerning altcoins and the beginning of an altseason.
TradingView’s data show that the altcoin market cap (TOTAL2) climbed above significant resistance in the election’s aftermath, raising users’ hopes that an altseason is finally here. TOTAL2 surged above $1 trillion last Wednesday, breaking above multiple resistance on the metric’s daily chart. This move pushed TOTAL2 out of a prolonged sideways trading range, leading analysts to suggest that the long-anticipated altseason may have arrived.
An altseason refers to a period during which altcoins, including Ethereum and other non-Bitcoin cryptocurrencies, outperform Bitcoin in a bull run. These events are rare and tend to be brief but intense, often setting new all-time highs for multiple altcoins.
Bitcoin dominated the crypto market for most of 2024, capturing significant capital inflows. However, recent signals suggest that altcoins may now lead the next phase of the bull market, marking a shift in the crypto ecosystem.
Bitcoin’s Breakout Signals Altseason’s Arrival
Historically, altseasons follow Bitcoin’s initial breakout. Analysts describe this process as Bitcoin achieving a “Blue Sky” breakout, which subsequently guides the broader market to higher levels. Trump’s election victory, combined with Bitcoin reaching a new all-time high, has bolstered market confidence and accelerated this transition.
Read also: Is Altseason Upon Us? Bitcoin Dominance Wanes as Analysts Predict Altcoin Rally
Following historical patterns, crypto analysts expect Bitcoin to rally higher in the early stages of the bull run before embarking on a pullback. That is when the altseason will enter full swing, with a transfer of capital from Bitcoin and the FOMO that usually follows. Crypto users believe the period between November 2024 and March 2025 will be crucial for maximizing returns during this market cycle. Accurate timing, particularly for altcoins, could define success in this phase of the bull market.
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