$BTC $ETH

Bitcoin Breaks Away — Altcoins Chart Their Own Path Amid Record Low Correlation

Bitcoin's continued dominance in the crypto space has long delayed expectations of a full-blown Altseason. But recent signals suggest that a seismic shift may be underway—potentially ushering in the largest Altseason yet, according to crypto analysts.

As market behavior evolves, signs are increasingly pointing toward a reversal in roles, with altcoins preparing to take center stage. João Wedson, on-chain analyst and founder of Alphractal, believes this cycle could mark the breakout moment for alternative cryptocurrencies.

By analyzing the Altcoin Season Index relative to Bitcoin, Wedson notes a growing detachment—suggesting that many altcoins are beginning to diverge from BTC’s historical trend. Unlike previous cycles, they’re no longer shadowing Bitcoin’s every move.

“These assets are becoming recalcitrant, breaking formation and carving out their own momentum,” Wedson explained, highlighting the mounting speculation around a forthcoming Altseason—where capital floods into non-BTC tokens.

Despite Bitcoin hovering near record highs, most altcoins remain significantly undervalued, offering little room for further decline. This market setup often precedes a strong rotation of capital from Bitcoin into the broader altcoin sector.

Given these dynamics, Wedson predicts an imminent and accelerated Altseason—one that may unfold independent of Bitcoin’s price trajectory. He also warned investors against clinging too tightly to Bitcoin and stablecoins in the current climate.

“From a major fund or trader's perspective, holding only BTC or stablecoins right now is strategically unsound,” he said.

Drawing parallels with 2021, Wedson noted how a convergence of RSI and MACD indicators then triggered a sharp decline in Bitcoin dominance—setting the stage for altcoins to surge. With similar indicators reappearing, fellow analyst Mags suggests we may be on the cusp of the most explosive Altseason of this cycle.