Altcoin Season Not Dead, Top Indicators Of Incoming Breakout

The much-acclaimed altcoin season might be making a positive return. After Bitcoin climbed to $120,000, attention is shifting to other parts of the crypto market.

Notably, Ethereum and several altcoins have posted strong gains in recent days.

Market data shows that trading volumes are up, and more investors are showing interest. These signs suggest the market could be entering another altcoin-driven phase.

Altcoin Season: Interest Soars After Bitcoin’s Rise

It is worth noting that the altcoin season might be making a comeback following Bitcoin’s recent jump close to the $120,000 mark.

According to CryptoQuant, the Ethereum price rose by 170% from recent lows and traded just 23% below its all-time high of $4,871.

In addition, this move is followed by a major investment from SharpLink, which put $1.3 billion into Ethereum.

The firm now holds over 438,000 ETH. This large purchase sparked more attention to Ethereum and other altcoins.

Notably, as Ethereum rose, many other altcoins began to rally as well. At the same time, Bitcoin stayed around its new high but did not grow as much.

Interestingly, this caused Bitcoin’s share of the overall market, known as Bitcoin dominance, to fall.

In addition, trading data showed that the volume of futures contracts for Ethereum and altcoins rose sharply.

According to the development, this metric reached $223.6 billion, the highest in five months.

On the other hand, Bitcoin’s futures trading volume dropped on centralized exchanges. In total, Ethereum and altcoins made up 83% of all futures volume, with Bitcoin holding only 17%.

Also, data from Binance supported this shift toward altcoins. Out of 424 futures pairs, only 23 had negative returns after Bitcoin reached its all-time high.

This showed that most altcoins were holding up well or gaining value as Bitcoin stayed strong.

Ethereum Leading the Way Again

It is important to add that the move in altcoins also fits with patterns seen in past market cycles.

For context, when Ethereum performs better than Bitcoin, it usually signals a coming altcoin season.

In a recent post on X, market analyst CrypFlow noted that in 2019, when Ethereum gained strength against Bitcoin, altcoins followed with strong gains.

In 2022, when Bitcoin regained control, altcoins did not perform as well. Now, Ethereum again seems to be taking the lead.

Technical signals such as the Relative Strength Index (RSI) on the monthly BTC/ETH chart support the idea that Ethereum is ready to move ahead.

Market data also shows that the monthly candle was about to close, which some traders see as a key moment.

The usual pattern of market moves is for Bitcoin to rise first, then Ethereum, followed by large cap altcoins, then smaller ones. This rotation may be starting again.

Retail Investors Return as Trading Picks Up

Another important sign was the rise in retail investor activity. Bitcoin transactions under $10,000 increased by nearly 10% over the past month.

This kind of growth has happened before big rallies in both Bitcoin and altcoins.

Analyst Leon Lee Anderson shared a new update on X. He believes the next major bull run and a fresh altcoin season could begin soon, possibly in early to mid-August.

The suggestion to investors was to keep a portfolio split roughly 60% in Bitcoin and Ethereum and 40% in altcoins.

If anything is clear, the combination of large investments, technical signals, rising futures volume, and growing retail interest points to a possible return of altcoin season.

While it is not certain when exactly it will start, the signs suggest a shift in the market could already be happening.

Investors will need to keep watching closely to see if altcoins continue to gain as Bitcoin holds near its all-time highs.

If this trend keeps up, the market might move through the usual cycle, giving altcoins their moment to shine once again.