When Is Altseason? 6 Data-Backed Signals To Time The Rotation As BTC Dominance Peaks (BTC, ETH) — 2025 Guide | Flash News Detail | Blockchain.News
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11/1/2025 4:00:00 PM

When Is Altseason? 6 Data-Backed Signals To Time The Rotation As BTC Dominance Peaks (BTC, ETH) — 2025 Guide

When Is Altseason? 6 Data-Backed Signals To Time The Rotation As BTC Dominance Peaks (BTC, ETH) — 2025 Guide

According to the source, traders asking when altseason starts should track six objective signals that have historically preceded altcoin outperformance, with each tied to verifiable data sources. 1) BTC dominance (BTC.D) rollover: Altseason historically begins when BTC.D tops and enters a downtrend; use breaks below 50D/200D moving averages and lower highs to confirm. Source: Binance Research, Bitcoin dominance studies (2020–2021); TradingView BTC.D index. 2) ETH/BTC trend reversal: Sustained ETH/BTC uptrend (higher highs, closes above the 200D MA) typically leads broader alt strength. Source: Kraken Intelligence, Altcoin season research (2021); Binance Research, factor and beta studies (2021); TradingView ETHBTC. 3) Derivatives rotation: Rising share of open interest and volume in altcoin perpetuals versus BTC, alongside steadily positive alt funding while BTC funding normalizes, has preceded alt rallies. Source: Glassnode Insights, Derivatives and leverage reports (2023); Binance Futures Research, funding and basis (2022); Deribit Insights, perpetual markets notes (2022). 4) Stablecoin dry powder: Increasing aggregate stablecoin supply and rising stablecoin exchange balances, as well as a falling Stablecoin Supply Ratio (SSR), indicate deployable capital into alts. Source: Glassnode, Stablecoin Supply Ratio (SSR) metric documentation (2020); CryptoQuant, stablecoin flow metrics documentation (2021). 5) Market breadth: A majority of top-100 alts closing above their 200D MA with expanding volume signals healthier breadth needed for altseason. Source: TradingView Screener methodology; Binance Research, market breadth and cross-sectional momentum studies (2021). 6) On-chain profit rotation: Elevated realized profits in BTC with a declining short-term holder supply share, followed by increasing alt exchange inflows, suggests rotation risk. Source: Glassnode Insights, realized profit/loss and HODL wave analyses (2021–2023). Trading approach: Wait for at least three of the above triggers to align, then scale into ETH/BTC and a diversified alt/BTC basket; invalidate if BTC.D makes new highs or if ETH/BTC loses its 200D MA on closing basis. Source: Binance Research, portfolio construction and rotation frameworks (2021); Kraken Intelligence, rotation playbooks (2021).

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Analysis

As Bitcoin continues to assert its dominance in the current market cycle, traders are increasingly questioning the timing of the much-anticipated altseason, where alternative cryptocurrencies typically surge ahead. This narrative highlights how BTC has outperformed most altcoins, raising discussions about market shifts and potential trading opportunities. In this analysis, we'll dive into Bitcoin's commanding position, historical patterns of altcoin rallies, and key indicators that could signal an impending altseason, all while providing actionable insights for crypto traders looking to capitalize on volatility.

Bitcoin's Overwhelming Dominance in This Cycle

Bitcoin has indeed demolished alts this cycle, with its market dominance metric soaring to levels that underscore its role as the king of cryptocurrencies. According to various blockchain analytics platforms, BTC's dominance has hovered around 55-60% throughout much of 2025, effectively squeezing out smaller tokens and leading to prolonged periods of altcoin underperformance. This isn't just a fleeting trend; historical data shows similar patterns in previous cycles, such as during the 2017 bull run where BTC dominance peaked before altcoins exploded. For traders, this means monitoring BTC pairs closely— for instance, if BTC/USD stabilizes above key resistance levels like $70,000, it could further delay altseason. However, any signs of BTC consolidation or minor pullbacks often precede altcoin rotations, offering entry points into undervalued assets. Trading volumes on major exchanges have reflected this, with BTC spot volumes consistently outpacing altcoin pairs by 3-5 times in recent months, as reported in on-chain metrics from sources like Glassnode. This dominance creates a risk-averse environment, where institutional flows favor Bitcoin ETFs over speculative alts, but it also sets the stage for explosive rebounds when sentiment shifts.

Historical Patterns and Triggers for Altseason

Looking back at past cycles, altseason typically ignites after Bitcoin achieves a significant milestone, such as halving events or all-time high breaches, followed by capital flowing into riskier assets. In the 2021 cycle, for example, altcoins like ETH and SOL saw 10x gains once BTC dominance dipped below 40%, according to data from TradingView charts timestamped around mid-2021. Currently, with BTC having demolished alts, traders should watch for catalysts like regulatory clarity on crypto or macroeconomic improvements, such as interest rate cuts, which could broaden market participation. On-chain indicators, including rising transaction counts on altcoin networks and increasing DeFi TVL (total value locked), are early signals—Ethereum's TVL has shown modest recoveries in Q3 2025, per DefiLlama reports. For trading strategies, consider dollar-cost averaging into altcoin baskets during BTC dips, targeting pairs like ETH/BTC or ADA/BTC, where relative strength index (RSI) readings below 30 often indicate oversold conditions ripe for reversal. Moreover, cross-market correlations with stocks, particularly tech indices like the Nasdaq, can provide clues; if AI-driven stocks rally, it might spill over to AI tokens in crypto, enhancing altseason potential.

From a technical perspective, Bitcoin's price action remains pivotal. If BTC faces resistance at $75,000 with declining volumes, it could signal exhaustion, paving the way for alts to catch up. Support levels around $60,000 have held firm in recent tests, as seen in price charts from October 2025, suggesting a floor that prevents deeper corrections. Traders eyeing altseason should track the Altcoin Market Cap index, which has lagged behind BTC's by over 20% year-to-date, but any breakout above moving averages could trigger FOMO-driven buying. Institutional interest, evidenced by inflows into altcoin funds as per CoinShares weekly reports, adds another layer—recent data shows a 15% uptick in altcoin ETF applications, hinting at building momentum. Risk management is crucial; use stop-losses on alt positions to mitigate BTC-led dumps, and diversify across sectors like DeFi, NFTs, and layer-2 solutions for balanced exposure.

When Could Altseason Finally Arrive?

Predicting the exact timing of altseason is challenging, but several factors point to a possible Q4 2025 or early 2026 onset. Market sentiment indicators, such as the Fear and Greed Index, have oscillated between neutral and greedy, often a precursor to alt rotations when greed peaks. If Bitcoin's halving aftereffects fully materialize, with reduced supply meeting steady demand, alts could benefit from overflow capital. Trading opportunities abound in this scenario: long alt/BTC pairs during confirmed uptrends, or hedging with options on platforms like Deribit. Broader implications include correlations with global events—positive developments in AI and blockchain adoption could accelerate alt gains, especially for tokens like LINK or RNDR tied to real-world utilities. In summary, while BTC has dominated, the cycle's natural progression suggests altseason is on the horizon; savvy traders will position accordingly, blending technical analysis with fundamental triggers for optimal returns. This analysis underscores the importance of patience and data-driven decisions in navigating crypto's volatile landscape.

Overall, as we assess when altseason might emerge, it's clear that Bitcoin's current stronghold creates both challenges and opportunities. By focusing on verifiable metrics and historical precedents, traders can better anticipate shifts, potentially turning altcoin laggards into portfolio winners.

Cointelegraph

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