Alt Season Is Here: Expect ‘Biblical’ Price Pump for Altcoins Soon

Key Takeaways:

• The altcoin season is expected to start soon, with alternative coins poised to outperform BTC.
• Bitcoin's dominance has hit a resistance point at 61.1%, indicating potential support for altcoins.
• Analysts predict a peak for altcoin prices by March 2025.

The altcoin season (alt season), during which alternative cryptocurrencies such as Ethereum, Ripple, Dogecoin, and others typically outshine Bitcoin (BTC) in price performance, is approaching rapidly. Key indicators suggest that this season will start in the coming weeks.

Recall that Bitcoin has been the major coin showing significant growth recently, particularly following the U.S. elections that brought the first American crypto president, Donald Trump.

Since early November, Bitcoin's price has been consistently reaching new peaks. It soared to $98,342.13 earlier today, marking a new all-time high as the bullish trend took hold.

Over the last month, Bitcoin's price has risen by about 45%, and analysts anticipate that the flagship coin will reach $100,000 very soon.

Related: BlackRock Bitcoin ETF Options See $1.9 Billion Traded on Launch Day.

While BTC continues to perform well, the leading money will soon be invested in altcoins. Altcoin season is typically recognized when at least 75% of the top 100 cryptocurrencies outperform Bitcoin in terms of returns over a set timeframe, generally around 90 days.

Bitcoin Dominance Hits Resistance

Although Bitcoin is currently outpacing other cryptocurrencies, there are predictions that funds may flow back into the altcoin market in a few weeks.

Crypto analyst Nilesh Rohilla notes that Bitcoin's dominance has reached a new seasonal high of 61.1%, a strong resistance point that could provide substantial support for other altcoins.

#BITCOIN DOMINANCE AT FRESH SEASON HIGH. THIS IS RESISTANCE AREA AND REJECTION FROM HERE WILL GIVE A QUICK JUMP IN #ALTS.

BUT SAME TIME BREAKOUT ABOVE 61.50% WILL GIVE SHORT TERM PANIC TOO.

PONT TO REMEMBER THAT IF WE CONSIDER HISTORICAL CHART, IT HINT THAT BTC.D MAKE TOP IN… pic.twitter.com/rOEdEOZVmn

— Nilesh Rohilla | Crypto Analyst (@nilesh_rohilla) November 20, 2024

This does not mean that Bitcoin's market price will necessarily decrease during this time; however, the percentage increases of altcoins will only likely surpass those of BTC. The theory is that Bitcoin's dominance might decline as altcoins gain traction and market presence.

For context, in the previous massive Altcoin Season in May 2021, the total market capitalization of the top 100 altcoins reached about 130% of Bitcoin's.

Meanwhile, the crypto trader warned if Bitcoin's dominance (BTCD) surpasses 61.50%, there could be a short-term panic within the altcoin market.

When Will the Alt Season Start?

The altcoin season occurs when investors start allocating their investments into cryptocurrencies other than Bitcoin in pursuit of better returns from lesser-known tokens, including memecoins.

During this time frame, funds are directed towards altcoins, often because of FOMO (fear of missing out), as traders and investors aim to catch the next big cryptocurrency opportunity.

Recent predictions from traders and analysts indicate that Bitcoin's market dominance may decrease in the upcoming months.

As per historical data, Nilesh Rohilla pointed out that if the current level is not the peak for the Bitcoin Dominance (BTCD) Chart, then a peak should be expected within the next 40 to 45 days. Following that, a dramatic rise in altcoin values would likely occur, with analysts anticipating an alt-season peak by March 2025.

At press time, the CMC Altcoin Season Index stands at 28/100, reflecting Bitcoin's stronghold. Altcoins are underperforming, so it's yet to be an Altcoin Season.