Article Source: Blockchain in Plain Language
Author: Cryptowrit3r
Translation: Blockchain in Plain Language
The most discussed topic in the cryptocurrency field has always been 'Altseason'. This is because during this brief period, crazy profits usually occur. Altseason is considered a main source for attracting crypto tourists, as it helps introduce newcomers to the crypto space. Today, we will learn about the top four indicators predicting Altseason in 2025.
1. What is Altseason in cryptocurrency?
Altseason is a phenomenon in the crypto space known for generating crazy profits. This phenomenon occurs with all cryptocurrencies except Bitcoin, which are altcoins. So think about your Solana, your BNB, your SUI, etc. When Altseason arrives, all these tokens start outperforming Bitcoin across various indicators, and their prices soar. Some tokens double in price within hours, while others see a 1000% increase in less than a week.
But all good things must come to an end. This is why Altseason is often closely followed by a serious sell-off, marking the peak of the bull market cycle. We will see a disruption in the upward trend, with prices plummeting due to massive whale sell-off pressure. When Altseason occurs during a bear market, it is often referred to as a relief rally and lasts for a shorter duration. The sell-off starts when tokens reach their high time frame (HTF) resistance levels. In high time frames, each candle represents a day, a week, or a month. This is often referred to as a trap bull, a term favored by Capo in the crypto space.
Recently, there has been a significant change in the cryptocurrency market. This is because there are now millions of crypto projects in operation, which means that when funds flow into the market, there are many projects to choose from. This could dilute the returns in the upcoming Altseason in 2025, leaving many token holders disappointed. The flow of funds typically looks like the following.
Let’s discuss the top indicators, the four key indicators for Altseason in 2025. We believe there are four indicators that will play a crucial role in the Altseason in 2025.
Bitcoin Dominance (BTC.D)
ETH/BTC
USDT Dominance
Other Trading Pairs/BTC
Let’s break down each indicator one by one.
2. Why is BTC.D important?
BTC.D represents Bitcoin Dominance (market share). This indicator is crucial for predicting our position in the market cycle. This is because it measures Bitcoin's share of the entire crypto market. If BTC.D is 61%, then Bitcoin controls 61% of the cryptocurrency market. Therefore, 61% of liquidity is specifically allocated to Bitcoin. Naturally, this means that it is currently Bitcoin's season, and we should expect altcoins to weaken relative to Bitcoin. When BTC.D starts to decline, it is a good sign for altcoins. This is when things get interesting, as liquidity flows more towards other crypto assets like Ethereum, blue chips, and altcoins.
Noticing that Bitcoin Dominance (BTC.D) has reached an important resistance level on the weekly chart. This means we can expect it to peak between 62-63%. If there is no peak, it will continue to rise until it approaches 70% before possibly peaking again. A drop below 58% on the daily chart followed by a re-test of 60% that fails to close above 60% could indicate that this 'big brother' (chad) has peaked.
The blue circles on the chart indicate the Altseason of 2021, when many famous crypto millionaires were born.
3. ETH/BTC Oracle
If you ask any crypto expert, they will tell you that ETH/BTC is one of the most important charts to keep an eye on. When ETH is trending down relative to BTC, altcoins tend to weaken and experience distribution (a fancy term for mass selling). However, when ETH gains momentum relative to BTC, you can expect the arrival of Altseason in 2025.
It is well-known that ETH is the largest ecosystem in the crypto space, with the most TVL (Total Value Locked). TVL is as important to a blockchain as deposits are to a bank. This is why when it goes up, everything rises quickly, and we see green candles everywhere. Looking at the high time frame charts, you will find ETH/BTC has been trending down for a long time. It is now facing a strong support level of about 0.031, which can begin to reverse upwards. This could trigger 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 Liquidity Flow
USDT.D is the market share of the US dollar stablecoin USDT in the crypto market. Tether issues USDT, which we know is the largest stablecoin in the crypto space. This means that whenever there is buying pressure, people buy by exchanging USDT for various crypto assets.
In general, when USDT.D decreases, people sell USDT to buy cryptocurrencies, whether it’s Bitcoin or altcoins. In tough times, people flock to Bitcoin, but buy during Bitcoin season (remember BTC.D), as Bitcoin's price will rise. But if you see USDT.D declining while altcoin prices are rising, then liquidity is flowing more towards altcoins rather than Bitcoin.
There is also a chart called OTHERS that you can find on Tradingview. This chart represents all altcoins except blue chips and the top ten projects. If this chart rises while USDT.D falls, that simply means Altseason in 2025.
A decrease in USDT.D may also mean that investors are cashing out profits or panicking. If you see TOTAL1, the total market capitalization of the crypto market, declining alongside this indicator, it means that something serious is happening.
You want to see this indicator drop below 4% and close weekly below this level 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. OTHERS/BTC Secret
We talked about OTHERS, which are all the altcoins outside of blue chips. A 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 and type OTHERS/BTC, as shown in the picture. Then look for the marked indicator and click on it.
You will be able to chart the performance of altcoins relative to Bitcoin. Simply put, whenever these altcoins gain momentum relative to Bitcoin, it is Altseason. Whenever Bitcoin gains momentum, it is Bitcoin season. The best time to buy altcoins is when they form long-term lows relative to Bitcoin, just like they are doing now.
Conversely, the best time to sell altcoins is when they peak, as was the case in early 2022.
6. Summary
Remember, no one can predict the market's top or bottom. The best we can do is make rational guesses. These indicators help us make those guesses, but we can never get the long-term low that everyone is waiting for. The cryptocurrency market is extremely volatile and unpredictable. Never forget this. Remember, this is educational content and should not be considered financial advice.
