The cryptocurrency market is sending clear signals that the altseason, a period when altcoins significantly outperform Bitcoin in returns, may begin as early as May 2025. Both the technical picture and the sentiment of participants indicate a shift towards altcoins. Increasing signs point to capital flowing from BTC to the rest of the market.
One of the key signals, the TOTAL2 chart, reflecting the total capitalization of all cryptocurrencies except Bitcoin. It has broken through a descending trend line that has held since January. Additionally, a bullish structure with a series of increasing minimums has formed on the chart. This is a strong technical signal of a potential reversal.
TOTAL2 chart, daily timeframe. Source: TradingView
If the market capitalization of altcoins exceeds the resistance zone around $1.25 trillion, the market may enter a sustainable uptrend with a classic pattern — higher lows and higher highs, meaning increasing minimums and maximums. Such a shift often indicates that money is starting to flow from Bitcoin to altcoins.
A similar dynamic is shown by the BTC dominance chart. Over the past six days, the indicator has fallen by 4%, marking the sharpest decline since November 2024. This usually indicates active capital flow into altcoins, giving them more weight in the market and potentially triggering a chain reaction of growth.
Analyst and founder of MN Capital Michael van de Poppe noted that a bearish divergence is observed on the weekly chart, accompanied by a decrease in volumes:
A strong bearish divergence on the weekly chart indicates that Bitcoin's dominance has peaked. This could signify the end of the bear market for altcoins.
Analysis of the Bitcoin dominance chart. Source: Michael Van Poppe.