November brought some positive momentum to the cryptocurrency market, but Bitcoin stole the spotlight, growing faster than altcoins and boosting its dominance. 

As we entered December, the tides shifted a little bit with Bitcoin's rally losing part of its steam between $100,000 - $107,000.  On the other hand, altcoins seem to be making impressive strides, which begs the question whether it’s already altcoin season.

What Is Altcoin Season?

Altcoin season is a period in the crypto market when altcoins—cryptocurrencies other than Bitcoin—experience significant growth and outperform Bitcoin. 

This phase typically follows a surge in interest and trading volume for altcoins, and it often coincides with a drop in Bitcoin's dominance in the market.

During altcoin season, there's generally a bullish market sentiment, with new and existing crypto traders jumping in, driving the market to new heights.

One way to measure if we’re in altcoin season is the Altcoin Season Index. 

When 75% of altcoins outperform Bitcoin, we can officially call it an altcoin season. Currently, the index sits at 65%, meaning we’re not quite there yet, but it’s close. 

However, there are other metrics apart from the Altcoin Season Index.

Bitcoin Dominance Breakdown

Looking at the Bitcoin Dominance Rate (BTCD), we see that it has recently taken a downturn.  After a five-wave upward movement starting in September 2022, Bitcoin dominance peaked at 61.53% in November. 

From there, it fell by more than 7%, dropping to 54.56% in early December. This decrease follows a rejection from the 0.618 Fibonacci retracement resistance level—a key technical indicator.

Several technical factors, such as bearish divergences in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD), suggest that Bitcoin dominance has likely reached its peak and could be heading downward. 

This trend indicates a shift in the market that could pave the way for altcoins to take center stage.

On December 4, the altcoin index reached 90. 

The Altcoin Market Cap Soars

The altcoin market cap (ALTCAP) is showing promising signs as well. Since 2023, it has been climbing steadily, with a massive 130% increase from its starting point. 

In November 2024, it surged above the critical $996 billion mark—breaking through previous resistance and reaching an all-time high of $1.16 trillion. The next resistance level is at $1.33 trillion, and based on current trends, the market may approach that target soon.

The lack of bearish divergences in the RSI and MACD indicates that the rally could continue. In fact, the altcoin market cap could rise even higher, potentially reaching $1.78 trillion, depending on how the market plays out.

Is Altseason Here?

The combination of a weakening Bitcoin dominance and a strong performance in the altcoin market cap suggests that altseason may have arrived. 

Bitcoin's dominance breakdown and the altcoin market’s growth reflect the shifting sentiment toward altcoins. 

While Bitcoin's momentum may have stalled, altcoins are leading the charge, which could mean that altcoin season could finally be underway.

What Analysts Are Saying

Analysts are cautiously optimistic about the future of altcoins. Henrik Zeberg, for example, predicted to his followers on X that we are on the brink of a major rally. 

According to him, we’re nearing the most explosive phase of altcoin season, which will bring euphoria and bullish forecasts. However, he cautions that this phase will be short-lived, with a major bear market likely to follow.

On the other hand, some analysts like @Eljaboom emphasize that now is the time to embrace altcoins, as fading from the market could mean missing out on life-changing gains. 

With altcoin season looking increasingly likely, it’s a suitable time to pay close attention to the market’s movements and prepare for what’s to come.

While we’re not officially in altcoin season just yet, the signs are all pointing in that direction. 

The decline in Bitcoin dominance and the surge in altcoin market cap suggest that altcoins could be ready to outperform Bitcoin in the near future. 

As always, it’s important to stay informed and watch for market signals to determine if altseason is about to take off or if it’s still a few steps away.

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