bitcoinFeature
Altcoin speculation slows, Bitcoin holds 60% grip as November approaches
With only two months remaining in 2026, a fresh wave of activity is emerging within the crypto market concerning altcoins.
Glassnode's lead analyst, AntiFragile, noted that while altcoin speculation has cooled, total spot trading volume has dropped to roughly three times Bitcoin’s volume, down from nearly four times in late September. This suggests that excessive speculative behavior has lessened, potentially offering buyers a healthier entry point.
Another analyst pointed out that TOTAL3, which aggregates the market capitalization of all cryptocurrencies apart from Bitcoin [BTC] and Ethereum [ETH], has reportedly regained a long-term technical pattern and is close to finishing a retest. A sustained breakout from this level could signal renewed strength across smaller crypto assets.
Furthermore, Kevin, an analyst on X, hinted at a bullish sign, observing that altcoin monthly momentum has turned positive for the first time since 2020, suggesting buying pressure might return. Yet, for these optimistic forecasts to materialize, TOTAL3 must maintain the $716 billion-$767 billion support zone to preserve the bullish structure.
Should TOTAL3 hold that support, the market could aim for the $858 billion-$874 billion resistance zone, implying potential increases in altcoin market capitalization. Conversely, a daily close below this support range could lead to further declines or sideways trading for altcoins before any recovery.
Despite the Altcoin Season Index currently sitting at 64, indicating improving performance, its placement below the typical 75 threshold raises questions. Bitcoin dominance, hovering around 60.52%, further signals that Bitcoin retains a major portion of the total crypto market, limiting clear evidence of broad capital rotation into altcoins.
This notion was echoed previously by on-chain analyst Joao Wedson, who suggested capital might be flowing back toward Bitcoin and stablecoins. However, significant outflows seen in October across Bitcoin, Ethereum, and other altcoins in monthly spot crypto ETF flows suggest institutional demand remains shaky.
These mixed signals paint a complex picture. If Bitcoin stabilizes, dominance eases, and capital flows improve, altcoins could gain momentum heading into November. Nevertheless, continued ETF outflows or a price correction in Bitcoin could postpone any rally.
This comes shortly after Maelstrom CIO Arthur Hayes sold $22.28 million worth of altcoins, including 6,400 ETH valued at $15.2 million, alongside ENA, UNI, ETHFI, AERO, and Zama.
Why it matters
The mixed signals present uncertainty for November; altcoin rallies depend on TOTAL3 holding key support zones. Continued ETF outflows or a Bitcoin correction could delay any potential capital rotation into smaller cryptocurrencies.
