Altcoin Season Index Climbs 30% as Ethereum Outperforms Bitcoin

Coin WorldThursday, Jun 12, 2025 3:18 am ET
2min read

In recent days, Ethereum has outperformed Bitcoin in terms of price action, sparking discussions among elite analysts about the potential return of altseason. Michaël van de Poppe shared a chart that suggests altcoins might be forming a long-term bottom. The chart tracks the OTHERS/BTC ratio, which measures the strength of the altcoin market against Bitcoin. The weekly chart indicates massive bullish divergences, particularly in the Relative Strength Index (RSI), signaling a potential trend reversal. This pattern is similar to past cycles before altcoins started gaining against Bitcoin.

The chart highlights a green accumulation zone, labeled as a new bottoming process, resembling the one before the 2021 altcoin run. There is also a breakout from a falling wedge pattern, adding to the bullish case. The price action has flattened out, volume is picking up, and the downtrend may be losing strength. This timing aligns with historical cycle behavior, as previous market bottoms for altcoins occurred around this phase, one year before the Bitcoin halving rally kicks in fully.

Michaël also mentioned the changing macroeconomic climate, with interest rates potentially dropping, liquidity returning, and global market sentiment shifting. These factors could benefit risk-on assets like altcoins. When money flows out of Bitcoin, altcoins often become the next destination. However, these early signs do not always lead to immediate rallies. Bottoms take time to form, and price movements can go sideways for weeks or months before any major breakout. But according to this chart, the worst may be behind us in terms of altcoin performance versus Bitcoin.

If the OTHERS/BTC ratio starts to climb steadily, it would signal that altcoins are gaining strength, potentially accelerating a rotation from Bitcoin into altcoins and marking the start of the long-awaited altseason. For now, the chart suggests a shift, and traders who have been watching closely might need to start paying attention again.

The Altcoin Season Index has climbed into the low 30s, indicating that investors are beginning to diversify their portfolios. This index measures the performance of altcoins relative to Bitcoin and has been steadily increasing, suggesting an impending altcoin season. The Total Market Cap of Altcoins is also showing signs of a potential bottoming process, as highlighted by prominent crypto analysts. This is a crucial indicator, as the total market cap of altcoins tends to explode when Bitcoin approaches its peak, signaling a rotation of funds from Bitcoin to altcoins.

Bitcoin dominance remains elevated at 64–65%, but this high level of dominance is not expected to last. Traders are closely watching key levels, such as Bitcoin dominance dropping below 53.5%, which could trigger a confirmed altcoin rally. Additionally, altcoin-BTC pairs breaking above certain resistance levels could further confirm this trend. The strong bullish divergence on OTHERS/BTC and TOTAL3 charts also supports the notion of an impending altcoin season.

The cryptocurrency market is known for its cyclical nature, and the current signals suggest that we may be entering a new cycle where altcoins outperform Bitcoin. This rotation is often driven by investors taking profits from Bitcoin and reallocating their funds to altcoins, which have the potential for higher returns. The upcoming altcoin season is expected to bring significant gains to those who position themselves correctly, as altcoins have historically shown the ability to deliver 10x gains during these periods.

In conclusion, the current chart signals and market indicators suggest that the altcoin bottom may be in, and a major rotation from Bitcoin to altcoins could be on the horizon. Investors and traders should closely monitor key levels and patterns to capitalize on this potential trend reversal. The cryptocurrency market is dynamic and unpredictable, but the current signals provide a compelling case for an impending altcoin season.