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Is the altcoin season coming? Teach you how to judge with 4 major indicators, not to miss potential big pump opportunities!
The most commonly discussed topic in the Crypto Assets industry has always been 'alt season' (Altseason). This is because it usually brings about crazy profits during this short period. Alt season is considered the main attraction for attracting tourists to encryption, as it helps introduce Newbies to the encryption industry. Today, we will understand the top four indicators for predicting alt season in 2025.
The altcoin season is a phenomenon in the encryption industry known for creating crazy profits. This phenomenon occurs in all cryptocurrencies except BTC, which are altcoins. So think about your $SOL, your $BNB, your $SUI, and so on. When the altcoin season arrives, all these tokens start to outperform BTC on various indicators, and their prices skyrocket. The prices of some tokens double in a few hours, and some have gains of up to 1,000% in less than a week.
But all good things must come to an end. That's why the altcoin season usually follows a serious dumping, symbolizing the peak of the bull market cycle. We will see the interruption of the uptrend, and the price will big dump due to the enormous Whale dumping pressure. When the altcoin season occurs during a bear market, it is usually called a remedial Rebound, and it lasts for a shorter period. Dumping begins when the Token touches its high-time-frame (HTF) resistance level. In the high-time-frame, each candle represents a day, a week, or a month. This is often called a trap bull, which is Capo's favorite term in the encryption industry.
Recently, there have been significant changes in the encryption currency market. This is because there are now millions of encryption projects in operation, which means that when funds flow into the market, there will be a large number of projects to choose from. This may dilute the upcoming altcoin season's returns in 2025, leaving many Token holders disappointed. The flow of funds is usually as shown in the figure below.
Image source: Plain language blockchain
Let's discuss the top indicators, the four major indicators of the 2025 Shanzhai season. We believe that four indicators will play a key role in the 2025 Shanzhai season:
BTC Dominance（BTC.D）
Ethercoin/BTC
USDT Dominance
Other trading pairs compared to Bitcoin
Let's analyze each indicator one by one.
BTC.D represents BTC Dominance (market share). This indicator is crucial for predicting our position in the market cycle. This is because it evaluates the market share of BTC in the entire encryption market. If BTC.D is 61%, then BTC controls 61% of the market share in the encryption currency market. Therefore, 61% of Liquidity is specifically used for BTC. Naturally, this means it is BTC's season, and we should expect altcoins to weaken relative to BTC. When BTC.D starts to decline, this is a good sign for altcoins. This is an interesting time because more Liquidity flows to other encryption assets, such as Ethereum, Blue-Chip Stocks, and altcoins.
Source: TradingView
Notice that BTC Dominance (BTC.D) has reached an important resistance level on the weekly chart. This means we can expect it to peak between 62-63%. If it doesn't peak, then it will continue to rise until it approaches 70% before possibly peaking again. Breaking below 58% on the daily chart and failing to close above 60% upon retesting may indicate that this 'big brother' (chad) has peaked.
Source: TradingView
The blue circles on the chart represent the altcoin season in 2021, during which many famous encryption millionaires were born.
3, Ethercoin/BTC Prophet
If you ask any encryption expert, they will tell you that Ethercoin/BTC is one of the most important charts that needs to be closely followed. When Ethercoin is relatively low compared to BTC, altcoins tend to weaken and experience distribution (this is a fancy way of saying massive selling). However, when Ethercoin gains momentum relative to BTC, you can expect the arrival of the altcoin season in 2025.
As we all know, Ethercoin is the largest ecosystem in the encryption industry, with the most TVL (Total Locked Value). TVL is as important to the Blockchain as deposits are to banks. That's why when it rises, everything goes up quickly, and we see green candles everywhere. By observing high-timeframe charts, you will find that Ethercoin/BTC has been declining for a long time. It is now facing a strong support level of about 0.031, which may start to reverse upwards. This could mean the start of the altcoin season. Ethercoin/BTC may also reverse if it fails to break below 0.033 and closes above 0.04.
Professional tip: When drawing such indicators, be sure to use HTF candlestick charts, such as monthly and weekly, or at least daily.
USDT.D is the market share of the US dollar Stable Coin USDT in the encryption market. We know that USDT (Tether) is the largest Stable Coin in the encryption industry. This means that whenever there is buying pressure, people will purchase by converting USDT into various encryption assets.
Generally speaking, when USDT.D drops, people sell USDT to buy Crypto Assets, whether it's Bitcoin or altcoin. In difficult times, people flock to Bitcoin, but they will buy during the BTC season (remember BTC.D) because the price of Bitcoin will rise. However, if you see the USDT.D drop and altcoin prices rise, then more Liquidity will flow to altcoin instead of Bitcoin.
There is also a chart called OTHERS that you can find on Tradingview. This chart represents all altcoins except Blue-Chip Stocks and the top ten projects. If this chart rises while USDT.D falls, it simply means the altcoin season in 2025.
The decline of USDT.D may also mean that investors are cashing in profits or panicking. If you see TOTAL1, the total market value of the encryption market, also declining when this indicator falls, it means something serious has happened.
Source: TradingView
You want to see this indicator drop below 4%, and close below this weekly, to confirm Liquidity is flowing towards encryption assets. If this coincides with the decline of BTC.D, then it's time to take action!
We talked about OTHERS, which refers to all altcoins except Blue-Chip Stocks. A better chart to look at the performance of these altcoins (OTHERS) relative to BTC. To get this chart on Tradingview, simply open the search bar and enter OTHERS/BTC, as shown in the image. Then locate the marked indicator and click on it.
Source: TradingView
You will be able to track the performance of altcoins relative to Bitcoin. Simply put, whenever these altcoins gain momentum relative to BTC, it's altcoin season. Whenever BTC gains momentum, it's BTC season. The best time to buy altcoins is when they form long-term lows relative to BTC, just like they are doing now.
Source: TradingView
On the contrary, the best time to sell altcoins is when they peak, which is the case in early 2022.
Please remember, no one can predict the top/bottom of the market. The best we can do is to make rational guesses. These indicators help us make these guesses, but we can never get the long-awaited long-term low that everyone is waiting for. The cryptocurrency market is extremely fluctuating and unpredictable. Never forget this. Please remember, this is educational content and should not be regarded as financial advice.
[Disclaimer] The market is risky and investments should be made with caution. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are appropriate for their specific circumstances. Any investment made based on this article is at your own risk.
This article is authorized to be reproduced from: "PANews"
Original author: Cryptowrit3r
"Is the altcoin season coming? Teach you to judge with 4 indicators and not miss potential big pump opportunities!" This article was first published in "encryption city".