The cryptocurrency market may be signaling the return of altcoin season. For the first time in four years, the altcoin market capitalization chart has formed a golden cross—a bullish technical pattern where the 50-day moving average crosses above the 200-day average. This development suggests a potential trend reversal and a broader altcoin recovery.
Bitcoin’s market dominance, which measures its share of the total crypto market cap, fell to 63% on Tuesday from 65% on May 7. This decline hints at capital rotation from Bitcoin to altcoins, often considered a precursor to altcoin season. Meanwhile, Ethereum has shown strong bullish momentum, potentially drawing the attention of institutional and mainstream investors.
Altcoin markets have struggled to gain consistent traction during Bitcoin’s bull runs, often facing fragmented narratives, isolated rallies, low liquidity, and major token unlocks. However, recent weeks have shown signs of a turnaround. As Bitcoin’s momentum cooled slightly, altcoins surged, buoyed by improving sentiment.
The golden cross, highlighted by crypto analyst OxNobler on X, marks the first such occurrence since 2021. Back then, a similar pattern preceded a major altcoin rally that pushed the market cap from $150 billion to $1.67 trillion.
Bitcoin itself has rebounded sharply, rising from its April 7 low of $74,508—triggered by tariff-related fears—to over $105,000, supported by easing global trade tensions and the Federal Reserve's dovish stance on interest rates. Market confidence is reflected in ETF inflows, which surpassed $920 million over the last two weeks, and the overall crypto market cap hitting new highs.
On-chain data shows over 3 million BTC now in profit, while losing coins on exchanges like Bitfinex have declined. Bitcoin dominance (BTC.D) has dipped further to 62.2%—down from its May 7 high of 65.37%—mirroring a similar pattern from 2021, when BTC dominance dropped from a peak of 73.62% and sparked a massive altcoin rally.
With capital flowing away from Bitcoin and into alternative cryptocurrencies, all signs point toward the early stages of a full-fledged altcoin season.