In 2025, the Altcoin market cap could take a huge leap ahead of altseason. In the crypto market, altcoins have followed Bitcoin, which has shown growth and consolidation. In the midst of the current market changes, analysts tried to respond to the query of whether altseason will begin soon.
These observations, backed by technical indicators and historical trends, suggest that altcoins may soon surpass previous market highs.
Altseason Predictions for 2025
Analysts cited the cyclical nature of the crypto market, where a clear pattern of altcoin boom after BTC dominance plunges emerged. In history, as it has been every time, a decrease in Bitcoin dominance led to an altseason.
Indicatively, in 2021, the market dominance of Bitcoin started to fall as altcoins soared, and it signaled an imminent rally of the smaller cryptos. This is likely to be repeated in 2025 since there is a similar trend in the chart patterns.
Since 2021, Bitcoin dominance, the BTC market share in comparison to the entire crypto market, has been increasing. Analysts suggested that the market is currently in a consolidation phase, where Bitcoin’s dominance is stabilizing and may eventually decline again.
Therefore, the altcoin market capitalization is about to experience a possible rally, which is likely to cut past 2021 highs.
Also, the first drop in the Global Liquidity Index (GLI) since 2021 indicates that the market environment is increasingly promising to the growth of altcoins. History has shown that the GLI, an indicator of the worldwide liquidity situation, has been an effective tool in predicting market trends.
Analysts observed that when the GLI enters a reversal phase, it often triggers increased buying activity, which could lead to a new altcoin bull run.
Further, the altseason energy propelled the Ethereum price to other 2025 highs as the currency hiked 20% within a week, hitting the $4,300 mark. This breakout gave a boost to the wider altcoin market, generating double-digit returns in crypto, such as SOL, DOGE, and HYPE.
MACD and Historical Bullish Trends
The Moving Average Convergence Divergence (MACD) technical indicator has also been instrumental during the realization of altseasons. The MACD operates on short and long-term moving averages of an asset, showing possible changes to the market sentiment.
A short-term average below the long-term average is typically a negative sign denoted by a bearish cross on the MACD. Nevertheless, this trend was historically followed by massive altcoin rallies.
Analyst Merlijn The Trader highlighted this pattern, noting that it marks the beginning of a bullish trend for altcoins. In past cycles, such as in 2019 and 2021, altcoins saw price increases following the occurrence of the “bearish cross” in the MACD.
Analysts believe that the upcoming altseason will be similar to the previous one, with the MACD indicating a bearish cross.
Also, the further growth and development of decentralized finance (DeFi) and non-fungible tokens (NFTs) will motivate the altcoin demand. Since blockchain technology is finding more applications, altcoins with robust fundamentals and practical applications may generate more adoption, further boosting their development.
On a similar note, another analyst supported the Altseason 3.0 sentiments and stated that the current market structure is similar to those in historical breakout durations.
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