Altcoin Season Setup Emerges as Crypto Indicators Align

Recent technical analysis points to an emerging opportunity for altcoins as cryptocurrency indicators align, reminiscent of past altcoin rallies in 2017 and 2021. Bitcoin’s dominance is approaching a critical resistance point, while the ETH/BTC pair is near support levels, suggesting potential capital rotation from Bitcoin to alternative cryptocurrencies.

Key Takeaways

Indicators show Bitcoin dominance at resistance and ETH/BTC near support.
Historical patterns predict potential altcoin rallies following similar market conditions.
Past altcoin seasons started when Bitcoin dominance reduced, allowing capital to flow into altcoins.
The current market conditions reflect previous setups that resulted in altcoin surges.

Altcoin season setup emerges as crypto indicators align - 1

Main Content

Technical analysis reveals that Bitcoin's dominance (BTC.D) is hitting a resistance level while the ETH/BTC trading pair is hovering close to support. These conditions are often precursors to capital rotation into altcoins, as observed in historical cycles prior to significant rallies in 2017 and 2021. Trader Merlijn The Trader has shared insights suggesting that the current setup could lead to similar movements.

"Bitcoin dominance is flashing red. Every major peak for BTC.D has preceded a steep decrease. Altcoins typically experience a surge before crashing. The conditions for 2025 resemble these past traps," noted Merlijn The Trader on November 24, 2025.

Historically, Bitcoin dominance tends to reverse when it reaches similar resistance points, while ETH/BTC has shown a tendency to find support at low levels. These correlations have led to substantial altcoin rallies in previous cycles. The analysis highlights marked reversal points in the chart with red circles, each indicating the start of what has come to be known as altcoin seasons.

Currently, the ETH/BTC trading pair is near a historical support level. Bitcoin dominance, which reflects Bitcoin's share of the total cryptocurrency market cap, indicates signs of a potential reverse from its current resistance.

Understanding Altcoin Season

Previous altcoin seasons, highlighted in green zones on the analysis chart, have typically begun when Bitcoin dominance decreased and the ETH/BTC pair gained traction from oversold conditions. Presently, both indicators are showing similarities to those previous turning points.

The cryptocurrency market has faced selling pressure among major assets in recent weeks, and liquidity conditions appear strained. Nevertheless, the alignment of Bitcoin dominance and ETH/BTC has historically signified crucial capital rotation. Market observers caution that while these indicators suggest potential shifts, there are no guarantees that past behaviors will repeat.

Technical analysts emphasize that market transitions often occur during times of negative sentiment. The current indicators propose a possible movement of funds from Bitcoin to altcoins if Bitcoin dominance reverses, much like what has transpired in previous cycles.