Bitcoin’s (BTCThe bullish trend is visible across all crypto markets. The TOTAL2 market cap index, which measures all crypto assets, excluding Bitcoins, is holding support near its 200-week moving mean. But, could an altcoin boom be on the horizon?
Altseason indicators are beginning to be noticed as the divergence in Bitcoin’s price and altcoin’s lackluster performance is causing the market to wonder if it will soon follow BTC.
Tests of long-term TOTAL2 support are just under $1 trillion
TOTAL2 reached a peak of $1.7 trillion near the end of 2025. It is currently at $970 Billion, which represents a decline by 43%. In January, the decline was accelerated after market cap breached a trend line of three years near $1.15 trillion.
Now, the market is focusing on support in higher time frames. On the weekly graph, TOTAL2’s market cap is trading close to the 200-week moving median near $900 billion. A level which held in the face of market corrections between September 2024 and March 2025.
On the daily chart, there is a consolidation under the old trendline. Also visible are the resistance bands between $1.1 and $1.25 trillion. This was formerly occupied by large liquidity clusters.
Total2 has dropped in value, and altcoins have also fallen. CryptoQuant data highlighted The price of 36.8% altcoins is near its historical lows. This excludes Bitcoin and Ether.ETH() and stablecoins.
When capital concentrations are concentrated in large assets, these readings will be elevated. XWIN Research said Inflows of spot Bitcoin ETFs and the increasing number tokens in the market have increased the competition between smaller assets.
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Altcoin performance averages near cycle lows
CryptoQuant data outlined Altcoins’ performance compared to Bitcoin. Altcoins on average trade at 44.4% less than their 200-day simple-moving-average (SMA), historically a low level seen during bear phase bottoms.
Data from the exchanges shows similar weaknesses. Binance altcoins only trade 4.59% above their 200 day SMA. This confirms a Bitcoin-led phase.
Ether (ETH) is usually the first altcoin to expand. On the weekly chart, there is no uptrend for the ETH/BTC currency pair. It continues to be traded in a descending trend.
The first move over 0.036 could signal the breaking of local resistance in the channel and an improvement in relative strength for ETH. If the pair is able to reclaim 0.043, which was previously used as a resistance level before the wider decline in 2025, it could signal a stronger capital rotation.
Bitcoin’s momentum will continue to drive the crypto market until these levels can be regained.
Also, market analysts can be found. debating The next altcoin wave will likely be like previous ones. Matt Hougan, Bitwise’s Chief Investment Officer recently stated that future altcoin cycles may not benefit the market in the same way. He argued that capital would most likely concentrate on projects that have a higher adoption rate and more real-world application.
Related: Bitcoin vs gold: ETF flows point to early capital rotation signs
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Source: cointelegraph.com
