The cryptocurrency landscape is once again buzzing with speculation about an impending altcoin season. This growing excitement is fueled by a marked drop in Bitcoin’s market dominance. Historically, such declines have often precedented significant surges in the altcoin market, propelling many tokens to impressive gains. Notably, crypto analyst Merlijn The Trader has identified a crucial signal in the altcoin market cap chart that mirrors trends observed before previous rallies.
Signs Pointing to an Upcoming Altcoin Surge
In a recent update on X, the analyst highlighted a critical occurrence involving the MACD crossover, a pivotal indicator in the financial markets. This technical phenomenon has historically foreshadowed ascents in the altcoin sector. Specifically, comparable MACD crossovers were notable in 2017 and again in 2020, both instrumental in setting the stage for remarkable altcoin booms and the subsequent bull runs that followed.
Fast-forward to 2024, and we’ve seen another significant MACD crossover indicating a bullish shift. As the metric transitioned into positive territory, it served as a precursor to a robust rally in Ethereum, igniting a broader enthusiasm within the altcoin market.
Recently, the MACD exhibited another promising crossover, following a similar path from negative to positive in July. If past patterns hold true, this could herald a new wave of growth, potentially sparking a vertical expansion in altcoin values, leading to another exhilarating bull market.
Merlijn’s analysis reveals that historical trends have consistently found the market bottom hitting key trendlines, which is now evident. Additionally, every breakout has corresponded with a successful MACD crossover, suggesting that we might be poised for a repeat occurrence soon.
A New Era for Bitcoin Dominance
As we dig deeper into market indicators, the recent decline in Bitcoin dominance down to around 60% has stirred additional optimism. After maintaining dominance above this threshold for five continuous months, a breakthrough under 60% could signal a pivotal moment for the altcoin sector.
Attempts to penetrate this crucial dominance level have been made twice in July by altcoin supporters, albeit unsuccessfully. However, if current trends persist, we might witness Bitcoin dominance dip below 60% for the first time since February 2025.
Moreover, the Altcoin Season Index has shown an upward trajectory, now resting at 44 according to CoinMarketCap data. This indicates that 44 of the top 100 altcoins are outperforming Bitcoin over the past three months. Should this index reach a score of 75, it will officially confirm that the altcoin season has commenced.
