Cryptocurrency market data and analysis from Swissblock reveal mounting evidence for an emerging altcoin season, marked by a notable decline in Bitcoin dominance and improving altcoin momentum.
Swissblock’s proprietary indicators, Impulse and Structure, show only 8% of altcoins currently exhibit negative momentum. This pattern suggests the broader altcoin market may be finding a durable bottom after a prolonged period of weakness.
The drop in Bitcoin dominance, despite the leading cryptocurrency achieving new highs, is a critical signal. Dominance fell from approximately 66% to 64%, indicating potential capital rotation out of Bitcoin and towards alternative cryptocurrencies.
Complementing this shift, the Altcoin Season Index has surged to 35, its highest level since February. While still below the critical threshold of 75 typically signaling a definitive altcoin season, the upward trajectory indicates strengthening conditions.
Reflecting growing investor interest, the total altcoin market capitalization excluding Bitcoin and Ethereum (TOTAL3) has climbed significantly. It reached $933 billion, representing a 14% increase since the start of July.
While analysts like TechDev and Michaël van de Poppe express optimism about altcoin performance potential, caution lingers. Bitcoin’s dominance remains historically elevated, leaving the market short of declaring a full-fledged altcoin season.