Key factors that signal money is rotating from Bitcoin into altcoins:
1. Bitcoin Dominance (BTC.D) drops – A fall from the 65 % rejection zone toward 54 % or lower has preceded every major alt-season ; the latest slide under 63 % is already under way .
2. ETH/BTC and major-alt/BTC pairs break resistance – Weekly rounded-bottom on ETH/BTC and a clean breakout on XRP/BTC both suggest the rotation is accelerating .
3. Altcoin market-cap breakouts – TOTAL2/TOTAL3 have surged 8 %–22 % this week, with the TOTAL2 weekly chart forming a cup-and-handle whose neckline at 1.7 T mirrors the 2021 alt-season top .
4. Momentum & on-chain gauges flip positive – CryptoQuant’s MVRV-based alt-season indicator and Swissblock’s “Impulse/Structure” both turned bullish in July after more than a year of BTC-heavy readings .
5. Macro & ETF catalysts – Prospects of Fed rate cuts, potential spot Solana/XRP/Dogecoin ETFs, and easing liquidity are all tilting risk appetite toward higher-beta altcoins .
6. Behavioral shift – Meme-coin dominance is falling while “real activity” Layer-1 tokens (ETH, SUI, SEI) lead gains, indicating a healthier, fundamentals-driven rotation .
If BTC continues to consolidate above 112 k, these conditions argue for an extended alt-season; a fresh BTC parabola or sharp breakdown could stall or reverse the flow .