The cryptocurrency market continues to evolve, with Bitcoin maintaining its position as the dominant force. Yet, despite Bitcoin’s repeated all-time highs, many altcoins have yet to reclaim their previous peaks from prior bull runs. This divergence has sparked intense debate among market analysts about when the long-anticipated alt season might finally arrive.
Unlike previous cycles—where altcoins surged in tandem with Bitcoin—the current market shows a prolonged period of Bitcoin dominance, suggesting a delayed rotation into alternative assets. However, new technical signals are emerging that could hint at an imminent shift in market dynamics.
Bitcoin Dominance Approaches Key Resistance Level
Bitcoin dominance—a metric that measures Bitcoin’s market capitalization as a percentage of the total crypto market cap—is now at the center of alt season predictions. Analysts are closely watching a critical resistance level near 71%, a threshold that has historically proven difficult to breach.
According to well-known on-chain analyst Rekt Capital, when Bitcoin dominance reaches this zone, it often stalls or reverses. His recent chart analysis highlights that past cycles saw dominance peak around this level before giving way to a broad rally in altcoins.
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This resistance level isn’t arbitrary. It represents a psychological and technical barrier where investor sentiment typically shifts from accumulating Bitcoin to seeking higher-growth opportunities in the altcoin space. If dominance fails to break above 71%, it could signal weakening momentum in Bitcoin and the beginning of capital rotation into altcoins.
Currently, Bitcoin dominance is on an uptrend, supported by a rising trendline that dates back to 2023. This suggests that, for now, Bitcoin continues to absorb a growing share of market capitalization. But as it nears this critical ceiling, the probability of a reversal increases.
RSI Signals Potential Market Rotation
Another compelling indicator pointing toward a possible alt season is the Relative Strength Index (RSI) of Bitcoin dominance. Market analyst Mister Crypto has drawn attention to historical RSI patterns, noting that dominance peaks in 2017, 2021, and now in 2025 have consistently marked turning points in the crypto cycle.
“Bitcoin dominance has topped out.
ALTSEASON NEXT!”
— Mister Crypto
These past peaks were all accompanied by overbought RSI readings, followed by sharp declines in dominance and a subsequent surge in altcoin valuations. Today, Bitcoin dominance is showing similar signs of overbought conditions, with RSI climbing into elevated territory.
While momentum remains strong, the proximity to overbought levels suggests that a pullback could be on the horizon. Historically, such pullbacks have opened the door for altcoins to outperform, as traders reallocate capital in search of asymmetric returns.
This dynamic is crucial for investors: when Bitcoin dominance plateaus or declines, it often coincides with increased volatility and momentum in mid- and small-cap altcoins—hallmarks of a full-blown alt season.
Cyclical Patterns Reinforce Alt Season Outlook
Adding further weight to these predictions is the cyclical nature of Bitcoin dominance itself. Analyst “Master of Crypto” has identified a recurring pattern in dominance cycles, each lasting approximately 1,221 days—or about 3.34 years.
This cycle aligns closely with major market turning points:
- The 2017 peak occurred after a similar period from the 2013 bottom.
- The 2021 bull run followed the same timeline from the 2017 peak.
- Now, in 2025, the cycle suggests another inflection point is due.
During these cycle peaks, Bitcoin dominance has historically hovered around 70%, followed by a sharp decline as altcoins enter their growth phase. The current data suggests we are nearing or at this peak, reinforcing the idea that an alt season could be imminent.
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This repetition of patterns doesn’t guarantee outcomes, but it does provide a framework for understanding market psychology and capital flows. When combined with current technical indicators, the case for an upcoming alt season becomes increasingly compelling.
What Defines a True Alt Season?
An alt season isn’t just about a few coins pumping—it’s characterized by broad-based strength across dozens or even hundreds of altcoins. Key signs include:
- Sustained decline in Bitcoin dominance (below 60%)
- High trading volume in altcoin markets
- New all-time highs for major layer-1 platforms, DeFi tokens, and emerging sectors like AI and RWA
- Increased retail participation and social media buzz
Past alt seasons saw assets like Ethereum, Solana, and Cardano deliver multi-bagger returns within months. The next phase could be driven by new narratives—modular blockchains, decentralized physical infrastructure (DePIN), and tokenized assets.
Key Takeaways for Investors
While timing the exact start of alt season is challenging, the current confluence of technical signals—resistance at 71% dominance, overbought RSI, and cyclical timing—suggests we are in the late stages of Bitcoin’s dominance cycle.
Investors may want to:
- Monitor Bitcoin dominance trends daily
- Watch for breakout patterns in major altcoin charts
- Diversify into high-conviction projects before broad market rotation
- Use dollar-cost averaging to reduce entry risk
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Frequently Asked Questions (FAQ)
Q: What is Bitcoin dominance?
A: Bitcoin dominance measures Bitcoin’s market cap as a percentage of the total cryptocurrency market. A rising dominance suggests capital is flowing into Bitcoin, while a decline often indicates rotation into altcoins.
Q: How do you know when alt season is starting?
A: Key indicators include a sustained drop in Bitcoin dominance (below 65%), strong price action across multiple altcoin sectors, increased trading volume, and rising investor sentiment on social platforms.
Q: Can alt season happen if Bitcoin is still rising?
A: Yes. While alt seasons often follow Bitcoin’s major rallies, they can occur even during sideways or moderately rising Bitcoin prices—as long as capital begins flowing disproportionately into altcoins.
Q: Are all altcoins likely to rise during alt season?
A: No. While many projects benefit, only those with strong fundamentals, active development, and real-world use cases tend to deliver significant returns. High-risk speculative tokens may surge temporarily but often underperform long-term.
Q: How long does an alt season typically last?
A: Past alt seasons have lasted between 6 to 12 months, depending on macroeconomic conditions and overall market sentiment. They usually begin 6–12 months after Bitcoin’s price peak.
Q: Should I sell Bitcoin to buy altcoins?
A: That depends on your risk tolerance and investment strategy. Many investors maintain a core Bitcoin holding while allocating a smaller portion (e.g., 10–30%) to high-potential altcoins during rotation phases.
Core Keywords:
- Alt season
- Bitcoin dominance
- Crypto market cycle
- RSI indicator
- Market rotation
- Altcoin rally
- Cryptocurrency investment
- On-chain analysis
The convergence of technical analysis, historical cycles, and on-chain data paints a coherent picture: the foundation for the next alt season is being laid. While timing remains uncertain, being prepared with research and strategy can position investors to capitalize when momentum shifts.