Altcoins on the Verge of a Breakout as Open Interest Hits All-Time High

3 mins mins

Key Points:

BTC dominance breaks 3-year uptrend, signaling potential altseason.
Altcoin open interest hits record $47B, raising market volatility.
Analysts expect 200-500% gains in top altcoins next quarter.

Bitcoin dominance has broken below a three-year rising trendline, indicating a potential shift toward altcoin market outperformance.

Data from Titan of Crypto shows a clear breakdown, which historically has preceded strong rallies in non-BTC assets. A confirmed breakdown could trigger significant capital rotation into altcoins.

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Michaël van de Poppe noted that altcoins have lagged while ETH dominated the market, but could surge once ETH stabilizes.

He expects many altcoins to gain between 200% and 500% in the next quarter. This aligns with past cycles where BTC and ETH strength preceded wider altcoin rallies.

Multi-Year Chart Patterns Support Bullish Altcoin Outlook

Analysis from Moustache highlights that the Total Altcoin Market Cap (TOTAL2) is nearing 2021 highs while breaking out of a multi-year pattern.

This structure mirrors the 2016–2017 cycle, which led to explosive gains. Sustained price action above resistance could confirm a new wave of market expansion.

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The setup suggests that altcoins could enter a second bullish wave in 2025, following consolidation in 2024.

Market structure now resembles the early stages of previous altseasons. Historical data supports the probability of extended upside if momentum continues.

On-Chain Data Shows Record Open Interest and Rotation

Glassnode reports that open interest across major altcoins has reached an all-time high of $47 billion.

This concentration of leverage increases market reflexivity, amplifying both gains and losses. Elevated leverage levels often coincide with periods of heightened volatility and rapid price moves.

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Further, Glassnode data indicates that market-cap-weighted 7-day returns for top altcoins have breached the +1σ band three times since April.

This pattern marks statistically significant outperformance and sustained capital rotation into altcoins. The magnitude and frequency of these events signal ongoing sector-wide momentum.

Sentiment data from Crypto Pulse shows the Crypto Fear & Greed Index at 63, indicating greed but not extreme levels.

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This suggests optimism remains, though sentiment can shift quickly in volatile market conditions. The combination of technical breakouts, on-chain positioning, and sentiment trends supports the potential for a strong altcoin phase.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.