Author: Cryptowrit3r
Translated by: Bai Hua Blockchain
One of the most discussed topics in the cryptocurrency space has always been the "Altseason". This is because during this brief period, there is usually a frenzy of gains. Altseason is considered the main source of attraction for crypto tourists, as it helps onboard new users into the crypto space. Today, we will understand the top 4 indicators to watch out for the predicted Altseason in 2025.
1. What is Altseason in the Crypto Space?
Altseason is a phenomenon in the crypto space known for creating crazy profits. This phenomenon occurs in all cryptocurrencies except Bitcoin, which are known as Altcoins. So think of your Solana, your BNB, your SUI, and so on. When Altseason arrives, all these Tokens start outperforming Bitcoin across various metrics, and their prices skyrocket. Some Tokens can double in price within a few hours, and some can surge by 1000% in less than a week.
But all good things must come to an end. This is why Altseason is usually followed by a severe sell-off, marking the top of the bull market cycle. We will see the uptrend interrupted, and prices crashing due to massive whale selling pressure. When Altseason occurs during a bear market, it is usually referred to as a relief rally and tends to be shorter-lived. The sell-off begins as Tokens hit their High Time Frame (HTF) resistance levels. In the HTF, each candle represents a day, a week, or a month. This is often referred to as a bull trap, a favorite term in the crypto space by Capo.
Recently, the crypto market has undergone a significant change. This is because there are now hundreds of millions of crypto projects in operation, meaning that when capital flows into the market, there will be a vast number of projects to choose from. This could lead to diluted gains in the upcoming Altseason of 2025, leaving many Token holders disappointed. The flow of capital typically looks like the image shown.
Let's discuss the top indicators, the 4 key indicators for the Altseason of 2025. We believe there are four indicators that will play a crucial role in the Altseason of 2025:
- Bitcoin Dominance (BTC.D)
- ETH/BTC
- USDT Dominance
- Other Pairs/BTC
Let's analyze each indicator one by one.
2. Why is BTC.D Important?
BTC.D represents the Bitcoin Dominance (market share). This indicator is crucial for predicting where we are in the market cycle. This is because it measures Bitcoin's share in the overall crypto market. If BTC.D is 61%, it means Bitcoin controls 61% of the crypto market share. Naturally, this means 61% of the liquidity is dedicated to Bitcoin. When BTC.D starts declining, this is a good sign for Altcoins. This is when things get interesting, as liquidity flows more into other crypto assets, such as Ethereum, blue-chip Altcoins, and smaller Altcoins.
Notice that Bitcoin Dominance (BTC.D) has reached an important resistance level on the weekly chart. This means we can expect it to top out around 62-63%. If it doesn't top out, it will continue to rise until it likely tops out again before reaching 70%. A daily close below 58%, followed by a retest of 60% that fails to hold above 60%, could signal that this "Chad" has topped out.
The blue circles on the chart indicate the Altseason of 2021, when many famous crypto millionaires were born.
3. The ETH/BTC Oracle
If you ask any crypto expert, they will tell you that ETH/BTC is one of the most important charts to watch closely. When ETH underperforms BTC, Altcoins tend to weaken and experience distribution (a fancy term for large-scale selling). However, when ETH gains momentum against BTC, you can expect the Altseason of 2025 to arrive.
It is well known that ETH is the largest ecosystem in the crypto space, with the highest Total Value Locked (TVL). TVL is as important to blockchains as deposits are to banks. This is why when it rises, everything quickly goes green, and we see green candles everywhere. Looking at the High Time Frame chart, you will find that ETH/BTC has been in a prolonged downtrend. It is now facing a strong support level around 0.031, which could start to reverse upwards. This could trigger the Altseason. ETH/BTC could also reverse if it fails to break below 0.033 and closes above 0.04.
Pro Tip: When plotting these types of indicators, be sure to use HTF candle charts, such as monthly and weekly, or at least daily.
4. USDT.D and the Flow of Liquidity
USDT.D is the dominance of the USDT stablecoin in the crypto market. Tether issues USDT, and we know it is the largest stablecoin in the crypto space. This means that whenever there is buying pressure, people will convert USDT to various crypto assets.
Generally, when USDT.D declines, people are selling USDT to buy cryptocurrencies, whether it's Bitcoin or Altcoins. In times of distress, people flock to Bitcoin, but during Bitcoin seasons (remember BTC.D), they buy Altcoins because Bitcoin's price will rise. But if you see USDT.D declining while Altcoin prices are rising, then liquidity is flowing more into Altcoins than Bitcoin.
There is also a chart called OTHERS, which you can find on TradingView. This chart represents all Altcoins except the blue-chip and top 10 projects. If this chart rises while USDT.D declines, then it simply means the Altseason of 2025 is upon us.
A decline in USDT.D could also mean investors are taking profits or panicking. If you see TOTAL1, the total market cap of the crypto market, also declining when this indicator drops, then it means something serious is happening.
You want to see this indicator decline below 4% and hold weekly closes below that to confirm that liquidity is flowing into crypto assets. If this coincides with a decline in BTC.D, then it's time to act!
5. The OTHERS/BTC Secret Sauce
We've discussed OTHERS, which represents all Altcoins except the blue-chips. An even better chart is to look at the performance of these Altcoins (OTHERS) relative to Bitcoin. To get this chart on TradingView, simply open the search bar, type in OTHERS/BTC, as shown in the image, and then locate the indicated indicator and click on it.
You will be able to plot the performance of Altcoins relative to Bitcoin. Simply put, whenever these Altcoins gain momentum against Bitcoin, it's Altseason. Whenever Bitcoin gains momentum, it's Bitcoin season. The best time to buy Altcoins is when they form a long-term low relative to Bitcoin, just like they are doing now.
Conversely, the best time to sell Altcoins is when they top out, which was the case in early 2022.
6. Summary
Please remember that no one can predict the top/bottom of the market. The best we can do is make rational guesses. These indicators help us make these guesses, but we can never get the long-term bottom that everyone is waiting for. The Altcoin market is extremely volatile and unpredictable. Never forget this. Please remember that this is educational content and should not be considered financial advice.
