Bitcoin Updates: Altcoin Market Forms Bullish Triangle—Is 2026 Set to Mirror the Past?

The altcoin sector is beginning to display preliminary indications of a possible breakout, as both technical signals and institutional moves point to a change in investor outlook. The TOTAL3 index, which measures the crypto market capitalization excluding

and , has developed a bullish ascending triangle pattern reminiscent of trends seen in 2017 and 2021. Experts suggest that surpassing the $1.5 trillion mark could validate a fresh altcoin surge, with the index now near $988 billion as capital shifts toward smaller coins, according to a .

Market watcher Ali has singled out three altcoins—Raydium (RAY),

(SEI), and (ALGO)—as likely contenders for a rebound. Raydium’s third-quarter results revealed a 220% revenue jump from its LaunchLab platform compared to the previous quarter, while technical metrics such as the TD Sequential and RSI indicate the asset may be oversold. Sei has seen increased institutional uptake thanks to its integration with Crypto.com Custody and the Giga upgrade, with TD Sequential buy signals also appearing. Algorand, on the other hand, is benefiting from real-world collaborations, including a renewed partnership with World Chess Plc, which brings in $700,000 per year in staking rewards, as detailed in a .

Looking at the broader ETF market, there is a clear split between Bitcoin and Ethereum. U.S. spot Bitcoin ETFs saw $283 million in new investments on October 27, led by BlackRock’s IBIT and Fidelity’s FBTC. In contrast, Ethereum ETFs experienced $243.9 million in withdrawals for the second week in a row, indicating a shift toward Bitcoin as a safer asset amid global economic uncertainty, according to a

. BlackRock’s significant presence in the Bitcoin ETF space—making up $28.1 billion of the total 2025 inflows—has played a key role in stabilizing the market, raising questions about whether altcoin ETFs can thrive without similar institutional support, as discussed in .

At the same time,

(SOL) has stood out, with its staking ETF (SSK) drawing $24 million in new funds this week and total assets under management exceeding $400 million. The token’s value has climbed back to $195, supported by a rising trendline and heightened network activity, including a 14% increase in stablecoin supply and $48 billion in transaction volume over the past 30 days, as reported by .

Regulatory shifts are also influencing the market. DeLeion Capital has pointed to BNB’s potential following the presidential pardon of Binance CEO CZ, which has alleviated regulatory worries and reignited institutional interest in the Binance ecosystem, according to a

. In addition, crypto venture capital remains active, with Coinbase’s $375 million purchase of the on-chain investment platform Echo and Pave Bank’s $39 million Series A funding round highlighting ongoing faith in blockchain innovation, as noted in a .

As the altcoin sector nears a possible turning point, market participants are watching closely to see if the TOTAL3 index will follow its historical trajectory. With Bitcoin ETF inflows steadying and mid-cap coins flashing early technical buy signals, conditions seem favorable for a phase-driven expansion into 2026—assuming macroeconomic and regulatory challenges remain under control, as previously covered by Cryptofront News.