The cryptocurrency market is showing strong signs of an impending altcoin season as the Altcoin Season Index has surged dramatically from 59 to 71 within a short period, according to Blockchain Center data. This significant jump brings the index closer to the critical 75 threshold that officially marks the start of an altcoin season, where 75% of the top 50 altcoins outperform Bitcoin over a 90-day period.
Market analysts are pointing to multiple converging signals that suggest a major capital rotation from Bitcoin to altcoins is already underway. Bitcoin Dominance (BTC.D), which tracks Bitcoin's share of the total crypto market cap, has slipped below a key support level rapidly rather than gradually. Prominent trader Merlijn emphasized that "every cycle, this marks the same outcome: Bitcoin cools. Alts ignite. Rotation isn't coming. It's already here. This is how altseasons always begin."
Technical analysts are drawing parallels to the 2017 altcoin boom, noting similar patterns including a descending wedge, confirmed breakout, and ongoing accumulation phase. The current setup strongly resembles the period before one of crypto's most dramatic rallies in history. Meanwhile, investor Lark Davis highlighted that altcoins are breaking out of a triangle formation to the upside with RSI not overheated, timing perfectly with the BTC → ETH → alts rotation pattern.
However, experts warn of increased speculation and scam activity alongside legitimate rallies. Simon Dedic, Founder of Moonrock Capital, cautioned that "we're entering altseason, but scams will pump the hardest," noting tokens with inflated valuations and questionable volume. Market veterans also observe that the 2025 environment differs from past cycles, with some attention shifting from altcoins to small-cap stocks in what Gareth Soloway called "insanity" regarding certain tokens making 1000%+ daily gains.
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