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  • Shrishesh Tanksalkar
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    Altcoin Season 2025: Is the Capital Rotation Already Underway?

    Story Highlights
    • BTC Dominance + Stablecoin dominance near historical rejection zone of 74โ€“75%

    • Ethereum reclaims major support and adds $138B in market cap

    • Altcoin market cap poised for 2โ€“3X if bullish patterns from 2023-24 repeat

    Todayโ€™s downturn has left crypto marketers wondering about the near future of the industry and the possibility of an altseason. Amidst all the hustle and bustle, analyst Cryptex Guy in an X post talks about whether we will see the altseason again.ย 

    In this write-up, we take you through the proponentโ€™s thesis, on the altcoin season, BTC dominance, stablecoins, Ethereumโ€™s stance, and more. 

    BTC Dominance + Stablecoin Mix:

    The BTC.D + USDT.D + USDC.D combo chart shared by the analyst highlights how much money sits outside altcoins. Historically, this metric approaching the 74โ€“75% red zone has been a trigger point for sharp altcoin rallies due to rejection from that overhead resistance.

    BTC Dominance Stablecoins

    Currently sitting at 70.87%, a final push into that zone, followed by rejection, as seen in the past, could mean a capital rotation into altcoins. Notably, a break below the ascending cyan trendline would confirm the end of Bitcoinโ€™s capital dominance run, making way for a full-fledged Altseason, similar to the mini alt-run weโ€™ve seen in Q4 2024.

    BTC Dominance on Lower Time Frame:

    On the 4H chart, BTC Dominance has broken out of a rising wedge, a classically bearish pattern for BTC.D. Since altcoins are inversely correlated to BTC.D, this breakout could lead to a short-term relief rally in altcoins.

    BTC Dominance

    Now, BTC.D appears to be retesting the wedgeโ€™s upper boundary. Should this retest be rejected, we can expect a quick 5โ€“10% upside candles on strong altcoins. This aligns with Ethereumโ€™s recent $1000+ surge, which injected $138B into the altcoin ecosystem.

    Ethereumโ€™s Retest & the Bigger Altseason Picture

    On higher time frames, Ethereum has reclaimed a significant multi-year trendline, known as the Bull-Bear boundary. A successful reclaim would boost investor confidence and could catalyze sustained inflows into altcoins.

    Ethereum Bigger Picture

    The altcoin market is also forming a bullish structure. If this pattern holds, it would set the stage for Altseason 2025, with many altcoins potentially seeing 2โ€“3x gains from current levels. This scenario mirrors the patterns from 2023 and 2024, when capital rotation into alts delivered broad market upside.

    Also read our Ethereum (ETH) Price Prediction 2025, 2026-2030

    FAQs

    When can we expect the next Altseason to begin?

    If BTC.D gets rejected from the 74โ€“75% zone and breaks the trendline, Altseason could commence in late 2025, as historical patterns and technical structures align.

    What role does Ethereum play in triggering Altseason?

    Ethereum acts as a capital gateway. Its successful reclaim of major support boosts market-wide confidence, triggering rotations into other Layer 1s and alt sectors.

    Is it too early to enter altcoins now?

    Currently, altcoin prices are still suppressed, offering early entry opportunities. As BTC.D approaches resistance, the risk-to-reward ratio for alts becomes increasingly favorable.

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