#Is Altseason Here?  Altcoin season signals: Altcoins strengthen as Bitcoin dominance declines

As Bitcoin’s market dominance declines, technical indicators and capital flows suggest a strong altcoin rally could begin in May 2025.

The decline in Bitcoin dominance and the strengthening of altcoins and memecoins could be signs of an altseason.

A drop in USDT dominance to 2022 levels could indicate an accelerating capital shift to Bitcoin and other cryptocurrencies.

The cryptocurrency market is showing signs that an altseason, a period when altcoins significantly outperform Bitcoin, could be on the horizon. Technical charts and market sentiment suggest that May 2025 could be the start of a broader altcoin rally driven by key indicators and changing capital flows.

The TOTAL2 chart, which represents the total market value of all cryptocurrencies excluding Bitcoin, has broken above a downtrend line that has been in place since January 2025. This breakout occurred in conjunction with a bullish breakout (BOS) of a structure that has been forming rising bottom formations on the daily chart.

A decisive move above the $1.25 trillion resistance level could support a clear uptrend of higher lows and higher highs. This shift indicates a capital shift from Bitcoin to altcoins.

Similarly, the Bitcoin Dominance (BTC.D) chart points to a potential market top. BTC.D has fallen 4% in the last six days. This is the sharpest decline since November 2024.

A falling BTC.D usually indicates a capital flow from Bitcoin to altcoins, allowing altcoins to increase their market share and prices to rise together.

USDT dominance could fall to new lows.

Tether USDT ₺38.76 dominance chart fell to 4.59 percent as of May 13, the lowest level since early February. As shown below, the USDT.D chart could find support at around 3.90 percent with a falling triangle formation. A bearish breakout could lead to the lowest levels since 2021 and overlap with previous altseason levels.

The decline in USDT dominance suggests that capital is shifting to other assets like Bitcoin and altcoins. Over the past seven days, Ether , XRP , and Solana have gained 44.3 percent, 20.6 percent, and 22 percent, respectively, while BTC is up only 10 percent.

Supporting the recovery with more in-depth analysis, crypto trader ZERO IKA observed that many altcoins have broken higher timeframe structures above their February and March peaks.

Despite the recent surges, the analyst noted that most altcoins are still 70 percent to 90 percent below their all-time highs, presenting a “relatively early” opportunity for a recovery.

The weakening stablecoin and Bitcoin dominance, along with the rise in altcoin market caps, paves the way for an altseason as long as the key trends above continue.