Cryptocurrency analysts are drawing comparisons between the current altcoin season and previous bull market cycles. For many, the altcoin market consolidates in a way that often precedes a significant rally, and it’s building a high level of optimism across the market.
Cryptocurrency analysts are drawing comparisons between the current altcoin season and previous bull market cycles. For many, the altcoin market consolidates in a way that often precedes a significant rally, and it’s building a high level of optimism across the market.
One major pattern that crypto analysts have observed is how investors rotate capital across major asset classes. Initially, Bitcoin dominated the cryptocurrency market with a protracted rally that saw the digital asset to new heights. The flagship cryptocurrency maintained a steady uptrend, with intermittent pullbacks for over 18 months, gaining approximately 400% in the process.
Similar to the previous bull cycles, investors’ attention is gradually shifting to altcoins, with Ethereum, the largest altcoin by market capitalization, leaving a notable footprint since the beginning of April. Ethereum embarked on a significant rally in the past four months, surging past previous milestones to achieve a new all-time high of $4,955. The top altcoin gained nearly 260% during this period, amid massive bullish momentum.
This is the classic crypto market playbook: big rallies in Bitcoin and then Ethereum set the stage for explosive moves in the altcoin market. Top altcoins, including Cardano (ADA), XRP, and Solana (SOL), already show signs of strength that match the early stages of an altseason.
The one indicator that confirms this “change of guard” is Bitcoin dominance (BTC.D). This metric reveals the scale of capital rotation and shows how investors are positioning for the next leg of the bull run.
According to TradingView’s , Bitcoin dominance experienced a sharp decline over the past two months. The notable indicator pulled back from above 66% in June to slightly above 58% at the time of writing.
This sway in dominance is indicative of the outflow of funds from Bitcoin, which typically precedes an altcoin season. It suggests that investors may be preparing for the kind of bull runs that the crypto market experienced in the past.
