A series of technical signals shared by market analysts this week point to what could be the early stages of a major rotation into altcoins β something not seen since late 2020 and 2021.
Key Takeaways
- β’ETH/BTC breakout hints at altcoin strength.
- β’Altcoin dominance sits at historic support.
- β’Total market cap shows bullish breakout.
- β’Analysts see signs of an altseason brewing.
While price action on individual tokens remains uneven, several widely-followed analysts argue that the groundwork for a shift is already in place. Their evidence spans fractal patterns, dominance ratios, and macro total market structure β and the message converges: conditions aligning for a substantial altcoin phase.
ETH/BTC Breakout Sparks New Cycle Talk
One of the more circulated observations came from trader Moustache, who pointed out that the ETH/BTC pair recently broke above a descending trend that persisted for approximately three and a half months. Although there has been little noise around the breakout, the analyst argued that the move is progressing as anticipated.
It's pretty quiet here, considering that ETH/BTC has broken through a 3.5-month downtrend, isn't it?ππ₯
Two weeks later, and everything is going according to plan.
Good times are ahead for Altcoins. https://t.co/03QtHaz9WRpic.twitter.com/Ssfha98weF
β ππ π¦π€π₯ππβπ 𧲠(@el_crypto_prof) December 8, 2025
The descending structure seen in ETH relative to Bitcoin resembled a broadening wedge pattern β often a bullish reversal signal. The breakout highlighted in the posted chart shows a rebound from the lower boundary, a tightening consolidation, and eventual upside resolve. The takeaway according to the analyst: altcoin conditions are slowly improving beneath the surface.
With Ethereum traditionally serving as a bellwether for altcoin momentum, the development has caught tradersβ attention, particularly those waiting for confirmation beyond Bitcoinβs leadership rally.
Altcoin Dominance Sitting on Historical Support
A separate analysis from Bitcoinsensus expanded the case for altcoins by examining the Others/BTC dominance chart β a measure of altcoins excluding Bitcoin and Ethereum. The monthly structure, according to the breakdown, continues to hold a long-term support trend that previously triggered explosive rallies.
Both in 2019 and again in 2020, the dominance metric bounced from similar levels before altcoins surged.
ALTCOIN DOMINANCE AT SUPPORT vs $BTC π
Monthly chart shows Others/BTC still holding long-term green support β just like 2019 & 2020.
π Historic bounces followed from this level
Reversal could spark major altseason ahead! π£π₯#Altcoins#Cryptopic.twitter.com/PaZ0VRTz30
β Bitcoinsensus (@Bitcoinsensus) December 9, 2025
This time, the indicator again rests near that same ascending support region, hinting at cyclic behavior. If historical behavior repeats, analysts argue, a reversal could spark an altseason as capital rotates into lower-cap assets. Supporting this view, the posted chart pointed to upward projections that align with prior recovery trajectories.
Macro Structure: Total Market Cap Breakout Confirmed
Perhaps the most compelling backdrop to the sentiment shift comes from the macro chart of total crypto market capitalization. Bitcoinsensus highlighted a rare double βcup-and-handleβ formation β a bullish continuation structure often associated with major cycle expansions.
The first breakout validated earlier this year, and now a larger multi-year cup-and-handle formation appears to be executing. The longer-term projection places a target as high as $6.5 trillion for total market value β far above current capitalization levels.
TOTAL MARKET CAP CUP-AND-HANDLE FORMATION π
Crypto market showing textbook bullish structure on the macro chart!
π’ Double cup & handle breakout confirmed
Next major target: $6.5 Trillion πΉ#Crypto#Bitcoinpic.twitter.com/g1D7Yb2l6R
β Bitcoinsensus (@Bitcoinsensus) December 9, 2025
While targets remain speculative, traders view the formation as evidence that the crypto market continues trending upward structurally β even through volatility and corrections.
What It Means for Traders
Bitcoin remains the gravitational core of the market, and without its stability, altcoins historically fail to sustain momentum. But this time, analysts argue, the rotation dynamics are quietly shifting.
- β’Ethereum reclaiming strength versus Bitcoin
- β’Altcoin dominance resting at cyclic demand levels
- β’Total market capitalization breaking on a multi-cycle bullish structure
Combined, these developments give confidence to traders who believe altcoins could be entering a phase of relative outperformance β though confirmation typically arrives later in price acceleration, not at breakout points.
So far, the market has yet to explode into full speculative rotation, but veteran traders are interpreting these early signals as groundwork. If money increasingly moves out of Bitcoin into higher-beta assets, the next few months could echo past altseasons β albeit under more mature institutional conditions.
Whether this becomes a full-scale rotation remains uncertain. But for now, sentiment is shifting β and a growing cluster of respected analysts believes the quiet accumulation phase for altcoins may be ending.