Analyst Predictions: Signs of Altcoin Season Emerge, Has Capital Rotation Officially Begun?

As Bitcoin's price retraces, analysts have observed that capital flows may be shifting from Bitcoin to altcoins.

They point out that when the #山寨季 indicator sends a positive signal, Bitcoin's market share declines, and its price begins to lose dominance, it usually indicates that the cryptocurrency market is showing signs of sector rotation in capital.

On Monday, Swissblock's report noted that approximately 75% of altcoins are currently facing market resistance, which is a critical moment in determining whether the altcoin season has officially started or failed.

The Market Impulse & Altseason indicators show that when Bitcoin performs strongly, the altcoin market usually appears weak, manifesting as short-term rebounds and limited capital rotation, but lacking continuity.

However, whether the altcoin season can strongly initiate depends on whether capital is genuinely rotating. The performance characteristic is that when Bitcoin's relative advantage weakens and its dominance declines, altcoins experience significant increases. Currently, Bitcoin's recent growth has slowed, which seems to indicate emerging signs of capital rotation.

Analyst 'Mister Crypto' noted in a post on X on Monday that the altseason index has fallen back to the 50 level, which is a clear signal indicating that capital rotation in altcoins may be underway.

Additionally, analyst 'Titan of Crypto' pointed out that before entering the current altcoin season, the market had formed a cup-and-handle pattern over several years and believes that once this pattern is broken, the long-ignored altcoin season will see a turning point.

FxPro Chief Market Analyst Alex Kuptsikevich told investors that altcoins have taken the lead because Bitcoin failed to sustain its rise last week. In this situation, he advises investors to reduce their Bitcoin holdings and increase their altcoin positions.

However, despite analysts generally believing that the altcoin market has arrived, CoinGlass's Bull Market Peak Composite Indicator shows that 30 different indicators have not indicated that the market is near a bull market peak.

According to Coingecko data, as of now, the total cryptocurrency market value is around $4 trillion, with Bitcoin's market share slightly rebounding to 59.2%.

In terms of overall market performance, Bitcoin has risen 1.9% over the past 7 days, while Ethereum has surged nearly 25% in the same period.