Altcoin volume hits 51%: But a rising BTC Dominance means alts face THIS risk
Key Takeaways
Is an altcoin season incoming?
Unlikely within the coming weeks. Rising Bitcoin Dominance exhibits that larger Altcoin Quantity alone doesn’t replicate sturdy market confidence.
How ought to buyers and merchants navigate the remainder of 2025?
For BTC and alts, a bearish section is ongoing, so contributors should reassess their biases accordingly.
In a current report, AMBCrypto reported how a rebound in demand for Bitcoin [BTC] might catch the bears unawares. Lengthy-term holders have been promoting Bitcoin, as proven by the elevated long-term holder spending in current weeks.
Onchain BTC actions supported the concept of selling pressure.
But, BTC continued to commerce above $100k. The convergence of rising community exercise, sturdy miner participation, and low MVRV meant Bitcoin might be forming a robust base forward of its subsequent transfer upward.
If this isn’t the start of a bear market, however as an alternative was a bull market reset, what does it imply for altcoins?
Tackling the altcoin season mirage
In a post on X, analyst Maartun noticed that the Altcoin Quantity was 51% of all trading volume.
For the uninitiated, this was an indication of market participation, however not essentially indicative of an altseason. Altcoin quantity of over 50% occurred within the last week of September, and for many of February as effectively.
Supply: TOTAL3 on TradingView
In these intervals, the development of altcoins was primarily downward, with transient bounces.
Due to this fact, the buying and selling quantity was doubtless a heap of promoting stress, with some respite in between. This alone just isn’t an indicator of an altseason.
Market cap faces a heavy ceiling
Additionally, one other level value mentioning is that the Altcoin Market Cap is struggling to breach and keep above the $1.13 trillion mark. This was the market high within the 2021 cycle, and hasn’t convincingly been breached but.
It’s time to flip to one of many strongest indicators of an altseason.
Supply: BTC.D on TradingView
On the 1-day chart, the Bitcoin Dominance was trending larger over the previous two months. It was difficult the resistance zone at 60.5%.
This left merchants targeted on the probability that Bitcoin might outperform most altcoins within the brief time period.
Furthermore, the swing factors from the weekly timeframe (orange) confirmed that the upper timeframe outlook was bullish for BTC.D. This meant that Bitcoin is prone to outperform the vast majority of the altcoin market within the coming weeks.
Buyers and altcoin merchants needs to be ready for additional worth drops.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
