What Is Altcoin Season?
Altcoin season is like that rare, exciting time in the crypto market when altcoins—all cryptocurrencies that aren’t Bitcoin—steal the show. During this period, altcoins consistently outperform Bitcoin, sometimes by staggering percentages. If you’re into crypto, this is when your favorite coins might surge significantly, leaving Bitcoin in the dust, at least temporarily.
Why does this matter? Understanding altcoin season is crucial for both investors and traders. It can be the difference between maximizing profits or missing out entirely. Altcoin season often captures the attention of crypto enthusiasts eager to see these smaller coins thrive. But how do you know when it’s happening?
There are clues—indicators like market dominance charts and trading volume shifts. Timing is everything. Some ask, “When is altcoin season?” or even wonder, “Will we ever see a true altcoin season this cycle?” These are great questions, and the answers might surprise you. Let’s dive in to find out!
What Signals an Altcoin Season?
Altcoin season doesn’t just sneak up—it leaves clear clues in the data. If you’re paying attention, you can spot the signs before the crowd catches on.
Bitcoin Dominance Chart
The Bitcoin dominance chart shows Bitcoin’s share of the total cryptocurrency market capitalization. Historically, this chart has been a reliable compass for navigating the crypto market:
- High Bitcoin Dominance: When Bitcoin’s dominance is strong (often above 60%), it suggests that investors are favoring Bitcoin over altcoins. This usually means it’s not altcoin season.
- Low Bitcoin Dominance: When Bitcoin’s dominance drops—especially below 50%—it signals that altcoins are gaining traction. A falling dominance often precedes or coincides with an altcoin season, as money flows from Bitcoin into alternative projects.
Altcoin Dominance Chart
The altcoin dominance chart measures the market capitalization of altcoins relative to Bitcoin. It’s like checking who’s holding the bigger slice of the crypto pie. During altcoin seasons, this chart often shows a significant rise in altcoin dominance. Historical trends confirm this pattern, so if you see Bitcoin's dominance dropping sharply, altcoins may be gearing up for a major run.
Altcoin Season Index
The altcoin season index evaluates the performance of the top 100 cryptocurrencies (excluding stablecoins) against Bitcoin over a 90-day window. This metric uses a scale from 1 to 100:
- Above 75: Altcoin season is here.
- Below 25: Bitcoin still reigns supreme.
Updated daily, the index reflects real-time shifts in market dynamics. So if you see it crossing into the “altcoin season” range, it’s time to pay attention.
Key Factors That Kick Off Altcoin Season
Several key factors influence the start of an altcoin season, including:
- Market Sentiment Shifts
When Bitcoin reaches new highs or faces volatile price swings, investors often shift their focus to altcoins. Positive news about blockchain technology or specific projects can also spark interest.
- Bitcoin Price Movements
When Bitcoin stabilizes after a major rally, many traders turn to altcoins for potentially higher returns. Think of it as Bitcoin passing the baton to altcoins.
- Decreased Bitcoin Dominance
A drop in Bitcoin’s market share—especially below critical levels like 50%—historically coincides with rising altcoin prices. This transition marks a shift in capital flows toward alternative projects.
- Institutional Interest and Market Events
Big events, like the launch of Bitcoin ETFs, often attract institutional money. Once Bitcoin sees enough boost, attention tends to spill over into altcoins as investors diversify.
- Technical Breakouts
Chart watchers rejoice—technical indicators can signal an incoming altcoin season. Breakouts in major altcoins often serve as early warning signs.
How to Spot the Signs
In sum, when you see the altcoin dominance chart climbing, the altcoin season index crossing 75, and Bitcoin’s dominance slipping, the stage is likely set. Combined with market sentiment shifts or institutional buzz, these factors are your best altcoin season indicators.
The big question: Are we in altcoin season now, or is it just around the corner? Keep your eyes open, and don’t miss the action.
Is It Altcoin Season Yet?
The big question: Is it altcoin season now? Based on the latest data, not quite—but the tides might be shifting.
Altcoin Season Index
The Altcoin Season Index currently sits at 35, signaling we're still in Bitcoin Season. This means less than 20% of altcoins have outperformed Bitcoin over the past 90 days. Investors remain laser-focused on Bitcoin, likely drawn by its strong performance and potential to hit critical resistance levels around $100,000 (and it's not even reached $95,000 now!).
Bitcoin Dominance and Altcoin Trends
Bitcoin's dominance has stabilized above 60%, reflecting continued confidence in the king of crypto. This is down from previous highs back in the 2021 bull market, but still in an upward move since late 2022.
Meanwhile, the Altcoin Dominance Chart (Crypto Total Market Cap Excluding Top 10 Dominance) shows smaller altcoins lagging, with dominance at 9.34%, down 29.64% YTD and only up 1.14% compared to last week, although we have heard several headlines about different cryptos breaking their all-time highs, or coming back to previous heights.
This is because gains have been concentrated in BTC and top projects like SOL, XRP, ADA, DOGE, and some new emerging meme coins, while others remain in waiting mode.
Sentiment and Trading Activity
The Crypto Fear and Greed Index is in the Extreme Greed zone at 83, showing bullish trader sentiment. Altcoin trading volumes are up 75% month-over-month, with many top altcoins exceeding their 30-day averages. Historically, such surges often precede broader rallies.
Key Signals to Watch
Ethereum, a bellwether for altcoins, is holding strong above $3,100, suggesting bullish momentum. While some investors aren’t impressed with Ethereum’s current pace, history suggests it often shines in Q1 after Bitcoin’s Q4 dominance.
While it’s not officially altcoin season yet, rising trading volumes, bullish sentiment, and altcoins breaking resistance hint that the market may be gearing up. Keep an eye on Bitcoin’s performance—if it stabilizes, altcoins could have their moment. Could 2025’s Q1 finally deliver the altcoin breakout we’ve been waiting for?
When Does Altcoin Season Start?
Altcoin seasons are exciting, but they don’t happen randomly. They follow patterns tied to Bitcoin’s performance and market dynamics. Let’s break it down.
Historical Patterns
- 2017 Altcoin Season: After Bitcoin hit nearly $20,000 in December 2017, many altcoins like Ethereum and Ripple soared over 1,000%. Investors moved into altcoins as Bitcoin stabilized, seeking higher returns.
- 2021 Altcoin Season: When Bitcoin broke its all-time high in early 2021, altcoins like Solana and Avalanche soared by over 10,000%, fueled by investor enthusiasm and the rise of DeFi projects.
- 2023 Insights: This was not an altcoin season, but after Bitcoin surpassed $71,000, altcoins began gaining traction and reached their highs in March. The pattern repeated: Bitcoin’s rally attracted attention first, then capital flowed to altcoins.
Typical Timing for Altcoin Seasons
- Post-Bitcoin Rallies: Historically, altcoin seasons emerge after Bitcoin completes a major price surge. As Bitcoin stabilizes, investors look for opportunities in smaller, more volatile assets.
- Market Consolidation Phases: When Bitcoin’s price levels off, capital often shifts toward altcoins. This is particularly noticeable when Bitcoin’s dominance falls below 50%.
- Seasonal Trends: Altcoin seasons tend to align with broader market cycles, lasting weeks or months depending on market sentiment. For instance, Ethereum’s Q1 performance has historically set the stage, with average gains of 92.75%.
- Fed Policy: Currently, the Fed is tightening liquidity, which means there is not much space for risk assets. However, many market commentators expect the situation to change in the December and January meetings, allowing ample cash flow to return. If this really happens, risk assets like altcoins will attract significant capital, creating conditions for the market to surge.
Technical Indicators to Watch
- Relative Strength Index (RSI): A rising RSI for major altcoins suggests growing bullish momentum.
- Moving Averages: Positive trends in these metrics can signal a favorable environment for altcoins.
- Ethereum as a Bellwether: As the largest altcoin, Ethereum’s price often leads the pack. Its strong Q1 performance historically signals the start of an altcoin season.
Altcoin seasons typically heat up after Bitcoin rallies, but dips around holidays like Christmas or New Year might shake the market first. Watch for Bitcoin stabilization, Ethereum momentum, and decreasing dominance to spot the next altcoin season. Will 2024 follow these patterns? History says yes—but the timing is always a puzzle.
How to Prepare for Altcoin Season
Altcoin season can bring big opportunities if you're ready. Here’s how to prepare:
- Monitor the Market: Platforms like COIN360 offer tools to track the crypto price index and coin market cap. Keeping an eye on market movements will help you spot trends and stay informed.
- Diversify Your Investments: Altcoin season can be volatile, so don’t put all your money into one project. Spread your investments across several promising altcoins, in different sectors, to manage risks while maximizing potential returns.
- Stay Updated on News: Altcoins can rally on news of partnerships, upgrades, or regulatory clarity. Follow crypto news to catch signals before the market reacts.
- Set Entry and Exit Strategies: Decide when to buy and when to sell. Emotions run high during volatile periods, so clear strategies can protect your profits.
Preparation is key during altcoin season. Watch the data, stay informed, and make decisions based on facts, not hype.
Conclusion: Making the Most of Altcoin Season
Understanding altcoin season and tracking its indicators is key to navigating the crypto market effectively. While altcoin season 2024 may not be guaranteed, staying informed with tools like market charts and price indexes ensures you’re ready to capitalize on any potential shifts when the time comes.
FAQs
When was the last altcoin season?
The most recent altcoin season occurred in early 2021. Following Bitcoin's surge to new all-time highs, many altcoins experienced significant gains, with some projects appreciating over 10,000%. This period was marked by heightened investor enthusiasm and the rapid growth of decentralized finance (DeFi) projects.
Which altcoins have potential?
Several altcoins are currently showing strong potential:
- Ethereum (ETH): As the leading smart contract platform, Ethereum continues to drive innovation in decentralized applications and DeFi.
- Solana (SOL): Known for its high-speed transactions and low fees, Solana is gaining traction among developers and investors.
- Cardano (ADA): With a focus on scalability and sustainability, Cardano is making strides in blockchain technology.
- Chainlink (LINK): Provides reliable real-world data to smart contracts, enhancing their functionality.
- Sui (SUI): SUI is a Layer-1 blockchain known for its parallel transaction execution, innovative SUI Move Language, and strong focus on performance and scalability in Web3 applications.
Investors should conduct thorough research and consider market trends before investing in any altcoin.
What triggers altcoin season?
Altcoin seasons are typically triggered by several factors:
- Bitcoin Price Movements: After significant rallies, Bitcoin often stabilizes, leading investors to seek higher returns in altcoins.
- Decreased Bitcoin Dominance: A drop in Bitcoin's market share indicates a shift of capital into altcoins.
- Market Sentiment Shifts: Positive news about blockchain technology or specific projects can spark increased interest in altcoins.
- Institutional Interest and Market Events: Major events, such as the launch of Bitcoin ETFs, can attract institutional money, which may eventually flow into altcoins as investors diversify.
These factors collectively contribute to the onset of an altcoin season.
What is BTC dominance and alt season?
Bitcoin dominance refers to Bitcoin's share of the total cryptocurrency market capitalization. When Bitcoin's dominance is high, it suggests that investors are favoring Bitcoin over altcoins. Conversely, a decline in Bitcoin dominance—especially below critical levels like 50%—often signals the beginning of an altcoin season, as capital flows from Bitcoin into alternative projects
