Crypto Market Rallies as Bitcoin Dominance Drops: Is Altseason Finally Here?

The cryptocurrency market is heating up this July as altcoins begin to outshine Bitcoin, suggesting the long-awaited altseason might finally be here. As predicted by several analysts over the past month, the crypto market has extended its bullish rally, breaking key resistance levels and pushing overall sentiment higher.

With Bitcoin dominance now falling below 64%, traders are increasingly shifting their focus—and their funds—into Ethereum and a host of promising altcoins. This trend could mark the start of a powerful crypto super cycle and a potential summer rally for alternative digital assets.

BTC Dominance Falls: The Technical Setup for Altcoins

On July 10, the Crypto TOTAL Market Cap chart confirmed bullish momentum, breaking above a major resistance channel. Analysts previously highlighted a completed ABC corrective pattern by June 24, predicting a strong continuation within wave. Today, that forecast appears to be materializing.

Meanwhile, Bitcoin’s share of the total market cap—its dominance ratio—has dropped sharply below 64%. This decline was preceded by multiple consecutive red 4-hour candles, even as BTC’s price remained relatively stable. The result? Altcoins began soaking up the liquidity.

Historically, when Bitcoin’s dominance falls while its price holds steady, it signals that money is rotating out of BTC and into higher-risk, higher-reward assets like Ethereum, Solana, and other trending altcoins.

Ethereum and AI Tokens Lead the Surge

As Bitcoin’s dominance shrinks, Ethereum (ETH) has shown increased volume and price movement, leading many to believe it’s at the forefront of a broader altcoin rally. Real-time trading data points to a rising risk appetite among investors, with capital flowing into Layer-2, real-world asset (RWA) tokens, and AI-based cryptocurrencies.

Leveraged positions are growing too. Rising open interest in altcoin perpetual futures suggests traders are positioning for big moves ahead, adding momentum to what could be the early stages of Altseason 2025.

Super Cycle or Summer Hype? Whale Signals Say “Yes”

Whale analysts like Whale.Guru and MisterCrypto are echoing bullish sentiments, pointing to macro conditions that support a full-blown altcoin rally. Easing monetary policies and increasing liquidity have created fertile ground for risk-on behavior.

A particularly compelling signal is the Altcoin-to-BTC ratio, which now sits at historical support levels—zones that previously kicked off massive altcoin runs in 2017, 2018, and 2021. The chart shows we could be entering Altseason III, a potential replay of previous breakout cycles.

Altseason Index Hits Rare Low: The Calm Before the Storm?

According to analyst Ted, the Altseason Index, tracked by CoinAnk.com, has dropped to 25—officially marking “Bitcoin Season.” But this level has historically served as a precursor to powerful altcoin surges.

At similar points in late 2019, mid-2020, and early 2023, altcoins like Ethereum and Cardano saw triple-digit gains in a matter of weeks. This pattern might now be repeating, as the market enters what appears to be a brief consolidation phase before another alt-led rally.

Altcoin Pump Cycle Could Begin Next Week

Adding fuel to the fire, analyst Trader Tardigrade shared a symmetrical pattern from the $TOTAL3 chart—tracking all cryptocurrencies excluding BTC and ETH. The data shows two identical 224-day consolidation phases, each followed by a 28-day altcoin rally.

We’re now at the end of the third such consolidation. If history repeats, the next four weeks could see a parabolic altcoin surge, possibly pushing the total altcoin market cap above $1.5 trillion.

Prepare for a Hot Crypto Summer

With technicals, sentiment, and whale activity all aligning, signs point to an imminent altcoin breakout. Bitcoin’s declining dominance and rising altcoin interest are shaping what could be a defining moment for crypto investors in 2025.

Whether you’re holding Ethereum, gaming tokens, AI coins, or undervalued DeFi gems—the window for major gains could open fast. Stay alert, manage your risk, and prepare for what might be the most exciting altseason in years.