Altcoin Season Already In Or Not? Experts Share Mixed Opinions

Key Insights:

• Glassnode’s Altcoin season Indicator was triggered on July 9, supported by expanding stablecoin supplies and rising capital inflows into Ethereum.
• Analyst Michael van de Poppe also noted a bullish divergence in altseason charts, while Ethereum dominance surged above 11% for the first time since 2020.
• Analysts like Rekt Capital warn that a sustainable breakout requires a weekly close and support above the $315 billion resistance level.

Discussions around a strong altcoin season have gathered pace once again amid the broader crypto market rally. With Bitcoin hitting an all-time high above $123,000 earlier this week, altcoins are showing strength, with Ethereum (ETH) up 20% on the weekly chart and Bitcoin dominance on the downtrend, dropping to 61.5%, the lowest since April. Crypto market experts have shared a mixed opinion regarding the official beginning of the altseason.

Altcoin Season Indicator Shows Bullish Divergence

The altcoin season indicator shows strong bullish divergence, wrote popular crypto analyst Michael van de Poppe. “This would signal that we’re at the start of the entire rally and reversal, “, added Poppe.

Blockchain analytics firm Glassnode also stated that its altseason indicator fired on July 9. The analytics firm forms a favorable environment for a broad altcoin rally. The indicator’s activation reflects a structural shift marked by expanding stablecoin supplies, increasing capital inflows into Bitcoin and Ethereum, and a simultaneous rise in overall capitalization of the altcoin market.

According to Glassnode, these conditions suggest growing investor appetite for risk and a supportive backdrop for capital rotation across the crypto ecosystem.

Bitcoin Dominance Drops, ETH Dominance Rises, Hinting Altcoin Season

The altcoin market has delivered strong returns since June, with total capitalization (TOTAL2) climbing 44% to reach $1.5 trillion. As a result, most investors who began accumulating altcoins during that period are now likely in profit.

During this same period, Bitcoin dominance declined, while ETH dominance rose. Popular analyst Poppe noted:

Crypto analyst Rekt Capital reports that Ethereum’s market dominance has climbed above 11% for the first time in five years. The last time ETH dominance (ETHDOM) surpassed this level was in July 2020, marking a significant shift in market dynamics. This was later followed by an ETH price rally to all-time highs of $4,000.

Investors Should Watch Key Signals for Full-Blown Altseason

Crypto analyst Rekt Capital also stated that the altcoin market capitalization (excluding top 10) has surged nearly 26% since reclaiming the $250 billion level. However, it now approaches a critical resistance zone around $315 billion, historically triggering rejections after brief overextensions.

For the altcoin market to break out sustainably to new highs, Rekt Capital must secure a weekly close above $315 billion and establish it as a solid support level.

Crypto analyst Benjamin Cowen has observed that Altcoin-to-Bitcoin (ALT/BTC) pairs have once again bottomed in June, continuing a pattern seen in 2022, 2023, and 2024. While he believes Ethereum’s ETH/BTC ratio has likely reached its cycle low, Cowen warns that broader alt/BTC markets may head lower into early Q4.

He suggests this could lead to a liquidity rotation from altcoins back into Bitcoin, although the shift may take several weeks to unfold. Cowen also noted exceptions, such as XRP, which he believes already formed a double bottom last year and is unlikely to revisit new lows against BTC this cycle.