"Altcoin season" describes a market phase where cryptocurrencies other than Bitcoin see significantly stronger gains than BTC.
When It Happens
Bitcoin dominance (BTC.D) — the share of the total crypto market held by BTC — begins to drop as capital flows into altcoins.
Investors often take profits from Bitcoin’s rally and rotate into higher-risk, higher-reward coins.
Commonly occurs after BTC’s strong run or during periods of broad market bullishness.
Key Signals
Falling BTC Dominance — e.g., moving from 55% down to 48%.
Altcoins outperforming BTC and ETH, especially mid- and small-caps.
Sharp rallies in meme coins and low-liquidity tokens.
Sector-specific hype (AI tokens, DeFi, gaming, L2 projects).
Rising trading volumes across multiple altcoins.
Phases
BTC Leads — Bitcoin rallies first, altcoins lag.
Ethereum Gains Strength — ETH outperforms BTC.
Large-Cap Altcoins Rally — SOL, ADA, XRP, etc.
Mid & Small Caps Explode — Meme coins and niche projects pump.
Blow-Off & Pullback — Sharp corrections follow the peak.
