Bitcoin nears all-time high, but expect lower level tests before continuation, sparking altcoin buying season.

Bitcoin nears all-time high, but expect lower level tests before continuation, sparking altcoin buying season.

Bitcoin (BTC) has been consolidating above the $115,000 level, signaling renewed strength in the market. The cryptocurrency is now trading close to its all-time high, with the BTC Z-Score indicating strong momentum but not yet at extreme levels [1]. This favorable backdrop suggests potential upside, with room for the market to expand further before reaching overheated conditions.

Ethereum (ETH) has been a significant driver of market optimism, posting massive gains and leading the altcoin sector. This has sparked discussions about a potential "Altcoin Season," where smaller-cap projects gain traction. The Altcoin Season Index is nearing the 50 threshold, historically associated with early phases of altcoin outperformance [2]. Bitcoin dominance, a metric reflecting BTC's share of the total crypto market cap, has hit a four-month low, aligning with patterns seen in 2019-2020 [2]. This shift suggests capital may soon flow into smaller-cap projects, potentially triggering exponential gains across the altcoin sector.

Toncoin (TON) has emerged as a top performer, rising 11.49% over the past seven days with a market cap of $8.9 billion [2]. Institutional investors are also stepping in, with top-tier whales accumulating over $110 million in Ethereum (ETH) and $60 million in XRP, reinforcing bullish sentiment around altcoins [2].

While Bitcoin remains dominant, the market is showing signs of a potential shift. Bitcoin dominance has fallen from 64.3% to around 61%, indicating a reduction in BTC's market share [3]. This decline is attributed to altcoin momentum gaining traction across various sectors, including major altcoins and meme-based projects [3]. The Altcoin Season Index from BlockchainCenter.net is currently at 39, below the 75 threshold required to confirm altseason [3].

The coming days will determine whether this is a sustainable breakout or just another phase of consolidation before the next major move. Bitcoin's technical and macro backdrop remains bullish, but sustained long-term growth will likely require the network to catch up with price action [1].

References:
[1] https://www.mitrade.com/insights/news/live-news/article-3-1026728-20250810
[2] https://www.ainvest.com/news/ethereum-news-today-altcoin-market-gains-momentum-bitcoin-dominance-hits-month-2508/
[3] https://www.mitrade.com/insights/news/live-news/article-3-1025234-20250809