Key Indicators Point to Imminent Altcoin Season
A prominent analyst and trader on X has indicated that "all roads lead to altcoin season" following a positive signal on the Bitcoin dominance chart. This chart recently broke away from a rising wedge pattern, suggesting a potential shift in market dynamics.
In addition to the Bitcoin dominance chart, the Altcoin/Bitcoin ratio has shown a significant bounce from a crucial support level. This level has historically served as a major indicator for the commencement of altcoin seasons.
Altcoin/Bitcoin Ratio Signals Altcoin Season Ahead
The Altcoin/Bitcoin ratio has rebounded from a historical support zone that has acted as a robust foundation for altcoin rallies in previous market cycles.
As illustrated in a chart shared by @bitcoinsensus on X, this level has marked the beginning of powerful altcoin rallies in the past, specifically during the 2017-2018 and 2020-2021 periods. Each prior bounce from this zone led to an increase in the ratio, signifying the outperformance of altcoins relative to Bitcoin, a trend that continued for months.
The current market behavior appears to be mirroring this historical pattern, with recent signals suggesting that an altcoin season is on the verge of beginning. The chart highlights two major peaks, followed by a significant corrective phase that has brought the ratio back into the same accumulation zone. If historical trends hold true, this could represent the early stages of a third and potentially strongest wave. The projection indicates a potential move towards the 0.60+ region, suggesting a substantial capital rotation from Bitcoin to the broader altcoin market.
Bitcoin Dominance Charts Break From Rising Wedge Pattern
Bitcoin dominance has recently broken down from a rising wedge formation, a technical development that typically signals the commencement of an altcoin season. This breakdown suggests that Bitcoin's share of the total cryptocurrency market is poised to shrink, with capital expected to rotate into alternative digital assets.
The rising wedge structure had been forming for several months, with price action consistently respecting both its upper resistance and lower support lines. As Bitcoin dominance climbed steadily during this period, it reflected Bitcoin's strong performance relative to the broader market. However, the recent decisive break below the pattern's support line marks a potential turning point.
A breakdown from a rising wedge on the Bitcoin dominance chart is technically interpreted as an indication that liquidity is flowing out of Bitcoin and into altcoins.
Expert Links 2020 & 2025 Cycles, Claims Altcoin Season Should Start in Q1 2026
CryptoELITES shared a new analysis two days ago, echoing similar sentiments about an impending altcoin season. The analysis compares the Total3 market cap, which excludes Bitcoin and Ethereum, against Bitcoin dominance, gold, and key macroeconomic indicators such as the DXY and US10Y.
The analyst suggests that current market conditions are beginning to mirror those observed in 2020, just prior to the last significant altcoin season. The chart highlights two historical events: August 2020 and a projected August 2025, both exhibiting a similar technical pattern. In both instances, Bitcoin dominance saw a surge before stalling near a major resistance level, while the altcoin market steadily built a base in the preceding weeks or months before its rally.
If this historical setup repeats, November 2025 could mark the initial signs of a rebound. CryptoELITES notes that a rising BTC dominance into December, potentially towards the 64% level, may serve as the final precursor before a broad rotation into altcoins. This scenario would align with the expectation of a full-fledged altcoin season commencing in early 2026. Furthermore, both 2019 and 2025 saw a single Bitcoin equate to approximately 57 ETH. According to the analyst, this metric also served as a turning point that ushered in the altcoin season.