The crypto market may be on the verge of a major shift. As Bitcoin dominance begins to falter near key resistance levels and altcoin dominance charts approach historic support zones, traders are asking: is altcoin season starting now?
Bitcoin Dominance Signals a Potential Rotation
Bitcoin dominance, which measures BTC’s share of the total crypto market cap, has hovered near 64% over the past few weeks. While the metric recently bounced off support, it has failed to break out decisively—suggesting a possible stall in Bitcoin’s relative strength.
Source: Tradingview
When Bitcoin dominance stagnates or declines, it often sets the stage for capital rotation into alternative cryptocurrencies. Historically, these phases have preceded strong rallies in altcoins, as investors begin seeking higher-risk, higher-reward plays across Layer 1s, DeFi tokens, and meme coins.
Altcoin Dominance Reaches Oversold Zone
Alphafractal’s long-term altcoin dominance index, which excludes both Bitcoin and stablecoins, shows the metric approaching a multi-year support zone around 30%. The same metric previously rebounded strongly from these levels in past market cycles, most notably in 2017 and again during the 2021 DeFi summer.
Source: Alphractal
This support level is seen by many analysts as a key threshold: if it holds, it could trigger a renewed bullish cycle for altcoins, particularly if Bitcoin consolidates above $100,000.
Market Context: Timing Matters
Despite the bullish setup, timing is crucial. The altcoin season index currently remains below 25—indicating we are still in the early stages of a possible rotation. A strong breakout in altcoin dominance or a decisive move below 62% in BTC dominance would be needed to confirm the shift.
Meanwhile, macroeconomic factors—such as interest rate decisions and regulatory signals—continue to influence investor sentiment. However, the growing interest in ETH, SOL, and niche sectors like AI coins and Telegram-based projects suggest a growing appetite for altcoin exposure.
Final Thoughts: What This Means for Altcoin Season 2025
While altcoin season hasn’t officially begun, several technical signals and dominance metrics are flashing early warnings. Bitcoin’s slowing momentum, combined with support on altcoin indices, hints that a market rotation may be on the horizon.
For savvy traders and investors, this is the time to start watching dominance metrics, ETH/BTC ratios, and project-specific catalysts closely. If historical patterns repeat, altcoin season 2025 could arrive sooner than expected.
