Is the altcoin season approaching? Key indicators reveal clues

It is widely known that the altcoin season is impending, but how can we confirm its true arrival?

"Bitcoin market dominance" is a crucial indicator for predicting the rise of altcoins.

If the dominance increases, funds flow into BTC, pulling in capital, while altcoins remain in a bearish trend.

If the dominance decreases, funds leave BTC for altcoins, often signaling the emergence of an altcoin bull market.

Historical examples exist: In March 2017, the dominance dropped from 80% to 30%, marking the start of the altcoin bull; in January 2021, it fell from 70% to 40%, leading to another altcoin surge.

As of December 2024, the dominance has reached 56% and broken the upward channel, which may indicate the arrival of the altcoin season. In June 2023, after breaking out, the dominance rose until November 2024, yet altcoins repeatedly hit new lows, causing retail investors great distress. Now, with the dominance breaking the channel, the market may be facing a new version of the altcoin season.