Introduction
Cryptocurrency markets are flashing compelling signals that a new altseason may be imminent, with Bitcoin dominance forming a rare “death cross” pattern that historically precedes massive altcoin rallies. Analyst Ito Shimotsuma identified this technical formation that has only occurred once per market cycle in 2016 and 2021, both instances resulting in parabolic gains for alternative cryptocurrencies. With Bitcoin’s market share dropping 12% from its June high and several major altcoins already hitting record highs, market indicators suggest we could be on the verge of the next major altcoin run.
Key Points
- Bitcoin dominance has formed a rare 'death cross' pattern that historically occurs once per market cycle and preceded massive altcoin rallies in 2016 and 2021
- Several major altcoins including Hyperliquid ($59.30) and Binance Coin ($1000+) have already reached new all-time highs this week
- Market analysts observe that Total3 (tracking altcoins and stablecoins) is breaking out with patterns mirroring previous cycle beginnings, typically starting in September
The Bitcoin Dominance Death Cross: A Historical Precursor
The cryptocurrency market is witnessing a rare technical pattern that has historically signaled the beginning of significant altcoin outperformance. Bitcoin dominance, which measures Bitcoin’s share of the total cryptocurrency market capitalization, has formed what analyst Ito Shimotsuma describes as a “death cross” – a pattern where shorter-term moving averages cross below longer-term ones. This specific formation has only occurred once each market cycle, with previous instances in 2016 and 2021 both preceding massive altcoin rallies.
The significance of this pattern is underscored by the substantial decline in Bitcoin’s market dominance, which has fallen 12% from its June high of 66% to just below 58% at the time of reporting. This represents the largest decline in BTC market share since mid-2022, indicating a notable shift in investor preference away from the market leader and toward alternative digital assets. Historical data shows that similar patterns in previous cycles resulted in what Shimotsuma characterizes as “parabolic gains for altcoins,” suggesting that history may be repeating itself.
Early Movers and Market Leaders
Several altcoins are already demonstrating strong momentum, with some reaching new all-time highs. Hyperliquid (HYPE) hit a peak of $59.30 on Thursday, while Binance Coin (BNB) surpassed the psychological $1,000 barrier on the same day. These record-breaking performances suggest that the altseason may already be underway for select tokens.
Among major cryptocurrencies, Ethereum and the iFinex Leo Token (LEO) appear closest to achieving new peaks, sitting just 8% and 6% away from their all-time highs respectively. XRP and Solana (SOL) follow at 16% below their peaks, while Tron (TRX) remains 19% away. However, the broader altcoin market still shows significant room for growth, with most top thirty altcoins languishing between 55% and 85% down from their historical highs, suggesting substantial upside potential if the altseason materializes as expected.
Technical Indicators and Analyst Sentiment
Multiple technical indicators are converging to support the altseason thesis. Analyst ‘Colin Talks Crypto’ observed that the “Total3” metric, which tracks altcoins and stablecoins, is breaking out, while altcoins excluding stablecoins are on the cusp of their own breakout. This technical momentum aligns with historical patterns that have preceded previous altseasons.
The timing also appears significant, with analyst ‘0xNobler’ noting that every altseason has historically begun in September. Other market observers have identified cyclical chart patterns that appear to be repeating, further supporting the notion that an altseason is imminent. The historical trend is particularly compelling – each cycle, altcoin season has kicked off after hitting similar resistance levels, with 2017, 2021, and now 2025 all showing this pattern.
Current market movers include Chainlink, which added 3% to reach $24.50, though it remains below its December peak near $30. Avalanche has shown particularly strong performance with a 5.4% gain to top $35 during Asian trading hours, representing a 50% surge over the past month amid growing interest in real-world asset tokenization. Near Protocol (NEAR) and Immutable (IMX) are also performing well with 12% and 17% daily gains respectively, indicating broad-based altcoin strength.
📎 Related coverage from: cryptopotato.com