Key Notes
- A total of 76% of the top 50 altcoins have outperformed Bitcoin over the past three months.
- Technical indicators suggest Bitcoin dominance could drop after retesting the 60.90% level, potentially triggering a rapid recovery for altcoins.
- Altcoin market cap shows optimism with chart patterns like the “cup and handle” signaling further upside.
The altcoin market has been facing strong volatility over the past week amid the two major crypto liquidation events. Amid the recent sell-off, the overall market cap has seen strong rejection while analysts call it a buy-the-dip opportunity. Some market analysts also believe that their outperformance over Bitcoin BTC $114 163 24h volatility: 2.4% Market cap: $2.28 T Vol. 24h: $60.43 B will also continue.
Altcoin Market Faces Resistance at All-Time Highs
The total capitalization of the altcoin market has encountered clear resistance at its all-time high (ATH), analysts say. Popular crypto analyst Michael van de Poppe stated that one more pullback may occur before altcoins break through this barrier and begin reaching significantly higher ATHs. Thus, he believes that this dip offers a strong buying opportunity for investors.
The #Altcoin market capitalization provides a clear rejection at the ATH.
One more pushback before it will break through the resistance and start printing massively new ATHs.
That means: time to buy the dip. pic.twitter.com/uVDmjZTdj0
— Michaël van de Poppe (@CryptoMichNL) September 29, 2025
Despite recent declines, 76% of the top 50 altcoins have outperformed Bitcoin over the past three months, reported crypto analyst Daan Crypto Trades . Analysts note that brief periods of altcoin outperformance are typically followed by pullbacks, allowing Bitcoin to regain dominance.
Currently, the Bitcoin dominance chart appears weak. This suggests that altcoins could continue gaining strength once Bitcoin and Ethereum ETH $4 223 24h volatility: 3.1% Market cap: $509.79 B Vol. 24h: $36.94 B establish a price floor .
Market observers say the cycle is in its late stage, marked by higher risk-taking and investors moving further down the risk curve. While this raises questions about the sustainability of gains, it generally supports the relative outperformance of altcoins during short-term upswings.
Even with the recent decline, 76% of altcoins in the top 50 have still outperformed $BTC in the past 3 months.
So far this cycle, each short period of altcoin outperformance has usually been quickly followed up by a large drawdown and BTC stealing the show again.
But so far,… pic.twitter.com/Tu48LgfClG
— Daan Crypto Trades (@DaanCrypto) September 29, 2025
Bitcoin Dominance Can Drop, Altcoins Eye Strong Breakout
The Bitcoin dominance has been trending on upside, as market analysts believe that it could first surge past 60.90% before resuming the downtrend. Once Bitcoin dominance completes a retest of the 60.90% level, technical indicators suggest a high probability of a decline in BTC dominance, potentially triggering a swift and robust recovery in the altcoin market.
On the #Bitcoin Dominance chart, the three-year-old rising wedge formation has broken down below the 60.90% level, and the anticipated retest towards this level is now progressing gradually. The latest move saw a rise to 59.1%, followed by a short-term retracement. However, the… pic.twitter.com/8TR013acjd
— The Crypto GEMs (@CryptoGemsCom) September 28, 2025
Crypto analyst Merlijn the Trader observed that altcoins have formed a classic “cup and handle” chart pattern. He suggested that if the pattern plays out, the next phase could see a parabolic rally.
ALTCOINS JUST DREW THE CUP & HANDLE.
Cup built in blood.
Handle built in fear.What comes after?
Parabolic mania. Multi-trillion cap is the destiny.We are almost there don’t you dare to give up NOW! pic.twitter.com/0g67lABrB4
— Merlijn The Trader (@MerlijnTrader) September 28, 2025
