Altcoin volume reaches 51%: but rising BTC dominance means alts are at THIS risk

Key Takeaways

Is there an altcoin season coming?

Not going within the coming weeks. The rising Bitcoin dominance exhibits that greater Altcoin quantity alone doesn’t replicate robust market confidence.

How ought to traders and merchants navigate the remainder of 2025?

For BTC and alts, a bearish section is underway, so individuals ought to reassess their biases accordingly.

In a current report, AMBCrypto reported how demand for Bitcoin is rebounding [BTC] may catch the bears unexpectedly. Lengthy-term holders offered Bitcoin, as evidenced by elevated spending by long-term holders in current weeks.

Onchain BTC actions supported the concept of sales pressure.

But, BTC continued to commerce above $100,000. The convergence of rising community exercise, robust miner participation, and low MVRV ensured that Bitcoin may kind a robust base forward of its subsequent transfer greater.

If this is not the beginning of a bear market, however as an alternative a bull market reset, what does this imply for altcoins?

Tackling the altcoin season mirage

Supply: CryptoQuant

In a single message on Xanalyst Maartun seen it was Altcoin quantity 51% of all trading volume.

To the uninitiated, this was an indication of market participation, however not essentially indicative of an alternate season. The Altcoin quantity enhance of over 50% occurred within the final week of September, and in addition throughout most of February.

Supply: TOTAL3 on TradingView

Throughout these intervals, the pattern of altcoins was primarily downward, with quick upswings.

Subsequently, the buying and selling quantity was most likely a variety of promoting strain, with some lull in between. This alone just isn’t an indicator of an altseason.

The market capitalization faces a heavy ceiling

One other level price mentioning is that the Altcoin Market Cap is struggling to remain above the $1.13 trillion mark. This was the market prime within the 2021 cycle and has not but been convincingly damaged.

It is time to flip to one of many strongest indicators of an altseason.

Supply: BTC.D on TradingView

On the 1-day chart, Bitcoin Dominance has been greater for the previous two months. It was a problem to the 60.5% resistance zone.

This prompted merchants to give attention to the chance that Bitcoin may outperform most altcoins within the close to time period.

Moreover, the weekly timeframe swing factors (orange) confirmed that the upper timeframe outlook was bullish for BTC.D. This meant that Bitcoin is more likely to outperform nearly all of the altcoin market within the coming weeks.

Buyers and altcoin merchants needs to be ready for additional worth drops.

Disclaimer: The knowledge offered doesn’t represent monetary recommendation, funding recommendation, buying and selling recommendation or every other type of recommendation and is solely the opinion of the author