Altcoin Market Holds Key Support – Ready for the Next Big Rally?

Jakarta, Pintu News – The crypto market is starting to show signs of recovery as investor sentiment slowly moves out of the fear zone. CoinMarketCap’s Crypto Fear and Greed Index hit 40 on Sunday, signaling neutral sentiment for the first time since October 2025.

This reflects a big change from the extreme fear that gripped the market at the end of 2025. In November, the index touched 10, indicating a very high level of fear among investors.

Market Sentiment Begins to Improve

The fall in sentiment stems from the historic market crash in October 2025. Bitcoin had set a record high price above $125,000 on Coinbase just days before the crash.

Read also: Bitcoin Price Surges to $93,000 Today: Here’s BTC’s Technical Outlook!

However, the price of Bitcoin (BTC) then plummeted to around $80,000, a drop of around 35%. Altcoins suffered even more severe losses, with many tokens losing most of their value just overnight.

The total market capitalization of altcoins – excluding Bitcoin and Ethereum (ETH) – plummeted by 33% in just one day. This fall thwarted the expectations of many who expected the bull run to continue.

Although market sentiment is improving, challenges still loom over the crypto industry in 2026. Growing geopolitical tensions and a lack of interest from retail investors could be barriers to the growth of the crypto market.

Markets remain stable after Venezuela attack

Bitcoin showed unusual resilience after the US military strike against Venezuela on Saturday. President Trump announced the success of the massive strike as well as the arrest of Venezuelan President Nicolas Maduro.

Usually, risky assets like cryptocurrencies tend to experience a sharp decline during geopolitical conflicts. But this time, Bitcoin has remained stable and even managed to return to the $91,000 price level.

Market analysts are divided on the impact of this event. Some think that this incident will not affect the price of Bitcoin much in the future.

Meanwhile, others think investors need to wait until traditional financial markets open on Monday. The reaction of the US stock market will determine the direction of the next crypto price movement.

Altcoin Market Shows Technical Strength

The altcoin market currently has a total market capitalization of over $879 billion. Crypto analyst Michaël van de Poppe stated that altcoins are in a position to make their next big upside move.

Read also: 3 Major Token Unlocks Worth Watching This Week, What’s the Impact?

The Total3 market capitalization – which tracks all crypto tokens except Bitcoin and Ethereum – is holding above $784 billion. This level is an important support area that formed during the market crash last October.

Van de Poppe notes that the Total3 chart is moving back towards its 365-day moving average. In October, this metric reached a record high of close to $1.2 trillion before plummeting.

Investors are now closely watching for signs of the start of altseason – a term for periods where altcoins experience sustained price increases.

However, 2025 has been a disappointing year for altcoin investors. The usual rotation of capital from Bitcoin to altcoins in previous cycles did not happen as expected.

Bitcoin’s annual candle closed red in 2025, marking the first time this has happened in a post-halving year. This development invalidates the four-year cycle theory that many traders have been relying on.

The crypto landscape has also changed drastically due to market saturation. CoinMarketCap now tracks over 29 million listed coins, all competing to attract limited investor capital.

Analysts highlight this explosion in the number of tokens as one of the main factors holding back the altseason. Too many projects make the flow of investor funds too dispersed.

The launch of crypto ETF products has also changed the market dynamics. ETFs create liquidity silos or closed liquidity containers that lock up funds, preventing them from flowing freely in the crypto ecosystem.

This structure prevents capital rotation from Bitcoin or other large tokens to altcoins. The traditional altseason phase that many traders expected is now hampered by this new market structure.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• CoinCentral. Altcoin Market Defends Key Support, Is a Breakout Rally Next? Accessed on January 6, 2026