Profit-taking season: 5 indicators that reveal the start of the "altcoin season" and how to prepare to seize opportunities
As the cryptocurrency market heats up, one question is on every trader and investor's lips: "Has the altcoin season begun?" This term does not just describe a period of activity, but a specific market phase where altcoins (all currencies 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 achieving massive returns. So what are the signs we should watch for, and how can we prepare for this promising season?
How do we know we are in an altcoin season?
According to the "CMC Altcoin Season Index", the season officially begins when 75% of the top 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 stands at 33/100, 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, smart traders should closely monitor 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 number starts to decline steadily, it is the clearest signal that investors are moving their capital from Bitcoin to altcoins in search of higher returns.
2. The rise of the Ethereum pair against Bitcoin (ETH/BTC)
Ethereum is considered the leader of altcoins. When the price of Ethereum begins to rise against Bitcoin (and not just against the dollar), this is a strong indicator that "smart money" is starting to bet on altcoins. A strong breakout in the ETH/BTC chart is often a precursor to a broader market uptrend.
3. The start of small and mid-cap coins moving
Capital flow typically follows a certain pattern:
First: The price of Bitcoin rises.
Second: It is followed by large coins like Ethereum.
Third: Money starts to flow into mid-cap and then small-cap coins, which often see huge spikes but carry higher risks. When you see small coins suddenly "waking up", that is 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 lists with unusually high volume, that is a signal that cannot be ignored.
5. The return of meme coin hype and retail 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 stories of "get rich quick", it means that fear of missing out (FOMO) has taken hold of individual investors. This is often a sign that the season is in its advanced stages or close to 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 get yourself ready:
Identify trending narratives early:
Each altcoin season is driven by certain sectors. Is it artificial intelligence (AI)? Real-world assets (RWA)? Or blockchain games (GameFi)? Do your research and identify the sectors that are garnering the most attention and innovation, and focus your investments there.
Set clear entry and exit targets:
In the midst of excitement, it is easy to be overcome 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.
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 currencies, and as you make profits, you can move some of those profits (not the original capital) into mid and small coins that have greater growth potential.
Focus on fundamentals, not just noise:
Although the noise may drive prices up temporarily, projects with strong fundamentals (good team, innovative technology, and real use cases) are the most capable of surviving and growing in the long term. Look for the substance behind the noise.
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 into stablecoins to secure their value, or into Bitcoin in preparation for the next market cycle.
Although we have not officially entered altcoin season yet, initial indicators are starting to appear. It is a period that requires vigilance, research, and readiness. 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, as great opportunities often come to those who plan for them in advance.
