Altcoin Season Update: Crucial Flipping Against Bitcoin Teases More Upside

The altcoin market capitalization showed signs of a reversal against Bitcoin earlier this week.

Notably, analysts highlighted patterns that suggested a potential altcoin season in the coming weeks.

Market data and research pointed to capital rotation, growing liquidity, and possible extended rallies in the months ahead. way.

Analysts Point to Altcoin Market Shift

It is worth mentioning that thus far this month, several analysts said the altcoin market hinted at signs of strength.

Michaël van de Poppe said the value of altcoins against Bitcoin had reached a bottom. He noted a bullish divergence, which often comes before a move higher.

Ito Shimotsuma said the chart showed a rounding bottom. He explained that this pattern can signal the end of a decline and the start of a rally.

He also said traders should expect sharp drops along the way. Each drop, he explained, could look like the end of the rally.

However, the market might recover and climb again, estimating the process could take up to four to five months.

Another trader, Merlijn, said the setup reminded him of the last big altcoin breakout.

During that period, some coins rose 50 to 100 times in price. He noted the difference this time was the size of the market.

With trillions of dollars now involved, the impact could be greater. He said a strong single surge, sometimes called a “god candle,” could play a major role in the rally.

Bitcoin Share Declines, Altcoins Grow

Meanwhile, Coinbase reported that Bitcoin dominance, the measure of BTC’s share of the total crypto market, fell from 65% in May to about 59% in August.

It is important to add that this decline suggested money was starting to move into altcoins.

Similarly, CoinMarketCap data showed that the total value of altcoins increased by more than 50% between early July and August 12, reaching $1.4 trillion.

The Altcoin Season Index, which tracks whether altcoins are doing better than Bitcoin, was in the low 40s. A reading above 75 has often signaled a clear altcoin season.

Analysts said the index had not reached that level yet, but the numbers pointed to growing strength in altcoins.

In past cycles, a drop in Bitcoin dominance combined with a rise in altcoin value has marked the beginning of an altseason.

Many traders followed these trends closely to see if the same pattern was forming again.

Market Conditions Improve

Furthermore, Coinbase also pointed to changes in trading conditions in the crypto market. Order books had more depth, meaning more buyers and sellers were active.

Spot and futures trading volumes also increased compared with earlier in the year.

At the same time, slippage fell, showing that trades could be made with less impact on prices.

If anything is clear, these changes suggest stronger liquidity in the altcoin market.

Liquidity is important because it allows larger trades to take place without sudden swings in price.

Analysts said this could help support longer rallies if demand for altcoins is sustained.

Still, views differed on timing as some analysts believed the altcoin season could take months to develop.

Others said caution was needed until indicators gave a clearer signal. Most agreed that conditions looked better for altcoins than they had earlier in the year.

By mid-August, the picture was clear: Bitcoin dominance was lower, the altcoin market was larger, and trading activity was stronger.

Whether this would turn into a full altcoin season was not yet certain, but the signs were being watched closely as the market moved into the rest of 2025.