Price Analysis View Non-AMP

Altseason Brewing, as Bitcoin Dominance Mirrors 2021 Crash?

Published by
Shrishesh Tanksalkar

The crypto market is showing early signs of an incoming Altseason as multiple technical and on-chain indicators turn bullish for altcoins. With total crypto market capitalization has reached $3.76 trillion, and the 24-hour volume at $125.91 billion. Investors seem to have started to rotate capital away from Bitcoin. 

Successively, this is evident in the declining Bitcoin dominance chart, which now sits at 60.7%, down from its recent peaks. Meanwhile, Ethereum’s 47.21% Q3 return has significantly outpaced Bitcoin’s modest 7.14%. This reinforces the thesis around the early stage of the altcoin season. Talking about which, the altseason index is presently at 37.

Ethereum and Altcoins Build Momentum

Ethereum is gaining momentum, which is marked by a dominance of 11.9%, and has notably outperformed Bitcoin throughout Q3. This aligns with the narrative from analyst Sensei, who suggests that the bull cycle is firmly in Phase 2. This is a stage where Ethereum leads, and investor sentiment gradually shifts to large caps and promising altcoins.

On the other hand, SmartDeFiBSC adds further context by drawing parallels to the 2021 BTC dominance crash, stating that “money will flow into ETH and alts.” The Bitcoin Dominance Chart also supports this pattern, showing a consolidation pattern strangely similar to the pre-breakdown structure seen in 2021, hinting at an imminent move in favor of altcoins.

On-Chain Metrics Confirm Rotation

According to CryptoQuant, altcoin deposits to Binance have jumped to over 45,000 in the past week, marking the highest inflow since late 2024. This confirms a surge in user activity and positioning around altcoins.

Additionally, the Altcoin Season Index, currently at 37/100, is climbing steadily from last month’s 26. While still below the “Altseason” threshold at 75+, it shows upward momentum and increasing investor appetite for altcoins. This coincides with the Altcoin Market Cap chart, which recently confirmed a golden cross, a strong technical indicator often seen before bullish rallies.

While we’re not in full-blown Altseason just yet, all signs, from dominance shifts to capital inflows, suggest it’s coming. Now may be a strategic time for investors to start positioning for what could be the most explosive stage of the cycle.

FAQs

What is Altseason?

Altseason is a market phase where altcoins significantly outperform Bitcoin. It’s typically identified when the altcoin season Index crosses 75 and Bitcoin dominance falls sharply.

Why is the Bitcoin dominance chart important?

The Bitcoin dominance chart reflects BTC’s market share. A falling dominance suggests capital rotation into ETH and altcoins, often a precursor to Altseason.

Is now a good time to buy altcoins?

Rising altcoin inflows, ETH outperformance, and technical indicators like the golden cross suggest early entry opportunities.

Shrishesh Tanksalkar

Shrishesh is a versatile writer with 2+ years of experience in cryptocurrencies. An engineer turned storyteller, this selective introvert is a wannabe biker on weekends.

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