The altcoin market shows strong bullish signals with the formation of a golden cross, indicating potential for significant capital growth.
Golden Cross as a Bullish Signal
The market capitalization of altcoins, excluding Bitcoin and Ethereum ($TOTAL3), has formed a golden cross, which is generally considered a bullish signal. This occurs when the 50-day SMA crosses above the 200-day SMA, indicating a shift in momentum upwards.
Capital Rotation to Altcoins
It appears that capital is rotating into altcoins as $TOTAL3 breaks a descending trendline evident since late 2024. The technical structure follows a familiar sequence: local top, downtrend, breakout, golden cross, and subsequent expansion.
Historical Patterns and Potential New Highs
Three golden cross patterns in this market cycle have all led to rallies across the altcoin segment. The latest golden cross in July 2025 occurred after a prolonged period of consolidation and breakout, mirroring previous expansions.
Given the technical factors and rising volume, altcoins may lead the next phase of market growth.