The cryptocurrency market is witnessing sustained signs of altcoin season continuation, propelled by declining Bitcoin dominance and increasing Ethereum momentum. Key indicators including the Altcoin Season Index and market capitalization patterns are providing critical guidance for investor exit strategies.
Since Glassnode’s Altcoin Season Indicator fired on July 9, the total altcoin market cap (TOTAL2) has surged 44%, generating significant profits for investors who entered the market in June. The Altcoin Season Index currently registers at 49 points, with analysts suggesting profit-taking when the index reaches the 70-100 range to maximize gains.
Technical patterns further reinforce bullish sentiment. Market observers including Peter Brandt and Greeny note a developing ‘Cup and Handle’ formation in the TOTAL3 market cap (excluding Bitcoin and Ethereum), indicating potential for the altcoin market to reach a $2 trillion valuation if the pattern completes.
Bitcoin dominance (BTC.D) has fallen from 65.5% to 61% throughout July, marking its steepest monthly decline since November 2024. Analysts project additional altcoin upside if BTC.D drops further to the 48%-50% threshold.
Investors are advised to monitor three critical metrics: the Altcoin Season Index for exit timing signals, the TOTAL3 pattern formation, and capital rotation phases between asset classes to strategically navigate the evolving market cycle.