As the cryptocurrency market heats up, one question echoes among all traders and investors: 'Has the Altcoin Season begun?' This term describes not just a period of activity, but a specific market phase where altcoins (all coins except Bitcoin) consistently and significantly outperform Bitcoin.

The ability to recognize this phase early is a skill that can transform a trading strategy from ordinary to exceptional, opening the door to massive returns. So what signs should we watch for, and how can we prepare for this promising season?

How do we know we are in the altcoin season?

According to the 'CMC Altcoin Season Index', the season officially begins when 75% of the best 100 cryptocurrencies (excluding stablecoins and wrapped tokens) outperform Bitcoin over the past 90 days. This index reflects a widespread shift in capital flow from Bitcoin dominance towards diverse growth in the altcoin market.

Currently, data (as of July 14, 2025) indicates that the index is at 33/100, which is a long way from the 75 threshold. This places us in a Bitcoin-dominated phase, but the recent rise in the index (from 26 to 33 in one week) hints at the beginning of rotation dynamics that could be the first spark of the upcoming season.

5 Key Indicators That Tell You the Season is Near

To discover the season before everyone confirms it, savvy traders must keep a close eye on these five indicators:

1. Decline in Bitcoin Dominance

Bitcoin dominance is the percentage that Bitcoin's market cap represents of the total market cap of cryptocurrencies. When this figure begins to decline steadily, it is the clearest signal that investors are shifting their capital from Bitcoin to altcoins in search of higher returns.

2. Rise of the Ethereum pair against Bitcoin (ETH/BTC)

Ethereum is considered the leader of altcoins. When Ethereum's price starts rising against Bitcoin (not just against the dollar), it's a strong indicator that 'smart money' is beginning to bet on altcoins. A strong breakout in the ETH/BTC chart is often a precursor to a broader market uptrend.

3. Start of small and mid-cap coin movements

Capital flow usually follows a certain pattern:

  • First: Bitcoin's price rises.

  • Second: Major coins like Ethereum follow.

  • Third: Money starts flowing into mid-cap and then small-cap coins, which often see massive gains but come with higher risks. When you see small coins 'wake up' suddenly, that’s a sign that market risk appetite has peaked.

4. Increased trading volumes in altcoins

Prices do not rise in a vacuum. Price increases accompanied by a significant rise in trading volumes are evidence of genuine interest and strong buying pressure. Monitor trading platforms; if you notice altcoins topping the trading volume charts, this is a signal that cannot be ignored.

5. The return of meme coins and individual investors (FOMO)

This is more of a social indicator than a technical one. When meme coins with no intrinsic value start to achieve astronomical gains, and social media is filled with 'get rich quick' stories, it means that fear of missing out (FOMO) has taken hold of retail investors. This is often an indicator that the season is in its advanced stages or nearing its peak.

5 Essential Tips for Preparing and Trading Smartly

Knowledge alone is not enough; preparation is the key to success. Here are 5 ways to equip yourself:

  1. Identify trending narratives early:
    Each altcoin season is driven by certain sectors. Is it artificial intelligence (AI)? Real-world assets (RWA)? Or blockchain gaming (GameFi)? Do your research and identify the sectors garnering the most attention and innovation, and focus your investments there.

  2. Set clear entry and exit goals:
    Amidst the excitement, it’s easy to be overtaken by greed. Before investing in any coin, set the price at which you will buy, the price targets at which you will start taking profits, and a stop-loss point to protect your capital. Discipline is your best friend.

  3. Implement the strategy of rotating from large to small coins:
    Do not jump straight into high-risk small coins. Start by investing in large, established coins, and as you make profits, you can move a portion of those profits (not the original capital) into mid and small coins that have greater growth potential.

  4. Focus on the fundamentals, not just the noise:
    While the noise may temporarily push prices up, projects with strong fundamentals (a good team, innovative technology, and real use cases) are the most likely to survive and grow in the long run. Look for the essence behind the noise.

  5. Secure your profits before the music stops:
    Always remember: Altcoin seasons do not last forever. The goal is not to sell at the absolute peak, but to achieve sustainable profits. Take profits periodically and convert them either to stablecoins to secure their value or to Bitcoin in preparation for the next market cycle.

Conclusion

Although we have not officially entered the altcoin season yet, preliminary indicators are starting to show. It is a period that requires vigilance, research, and preparation. By monitoring key indicators and implementing a disciplined trading strategy, you can turn this season from mere market noise into a real opportunity to maximize your investment portfolio. Be prepared; great opportunities often come to those who plan ahead.