These 3 Charts Scream Altcoin Season Is Coming — Here’s Why It’s Time to Pay Attention

Key Takeaways

• This week, the Bitcoin Dominance Rate (BTCD) fell by over 2%.
• Altcoins are starting to show strength relative to Bitcoin.
• Is the possibility of an altcoin season in 2025 back on track?

Altcoins have underperformed relative to Bitcoin (BTC) in the current market cycle. The lack of relative strength is visible in both upward and downward movements.

Ethereum (ETH), the biggest altcoin, did not reach a new all-time high this cycle and fell 65% after its cycle high.

Comparatively, Bitcoin reached a new all-time high and only fell 31% afterward.

However, this week’s movement has renewed optimism that altcoins may rally in 2025. So, the main question is: Is it altcoin season yet?

Let’s examine a few charts and see if that is likely.

Bitcoin Dominance Cools Off

Bitcoin’s Dominance has increased without much retracement since August 2022, moving inside an ascending parallel channel.

BTCD has touched the channel’s support and resistance trend lines multiple times, more recently this week (red icon).

The most recent touch of the resistance trend line coincided with the $65% resistance area, creating a bearish weekly candlestick.

If this rejection triggers a decline, the price could fall to the channel’s support trend line, which coincides wth the 0.618 Fibonacci level at 59.70%.

Technical indicators give mixed readings. While the Relative Strength Index (RSI) generated a bearish divergence (orange), the Moving Average Convergence/Divergence (MACD) is still positive.

So, while the ongoing BTC Dominance decline is a positive sign for the possibility of an altcoin season, it does not confirm its arrival yet.

Altcoins Could Reverse

The OTHERS/BTC chart shows altcoins’ relative strength by charting them against Bitcoin.

The chart shows that altcoins have underperformed Bitcoin heavily since December 2024, falling in a five-wave decline. 

If the count is accurate, the decrease is over (red), after wave five developed into an ending diagonal (red).

A breakout above 8.15% will confirm this and could significantly increase to 9.50-10%.

Technical indicators support this outlook, since the RSI and MACD have generated bullish divergences (orange).

The proposed breakout aligns well with a considerable decline in the BTC dominance rate.

Altcoins Breakout

Finally, the altcoin market cap (ALTCAP) chart shows a completed five-wave decline (red) and breakout from a descending wedge.

The breakout is another five-wave increase (black), and ALTCAP is currently in the fifth and final wave of this increase.

So, the ALTCAP could reach the $1.25 trillion resistance area and correct before eventually starting another upward movement.

While it is still unclear if that increase will be a five-wave upward movement or an A-B-C structure, both predict new highs.

Altcoin Season Heating Up

The Bitcoin Dominance chart finally shows a decline, coinciding with a rally in the altcoin market cap.

Altcoins are showing relative strength against Bitcoin and could be on the precipice of a more significant trend reversal.