Altseason Is Coming: Why?

In the context of the constantly changing cryptocurrency market, there are many signs that an Altseason period is forming, marking the explosion of altcoins. Let's analyze in detail the key factors that contribute to this transition.

1. The trend of Bitcoin Dominance (BTC.D) Bearish Divergence BTC.D is rising but the momentum is weakening: Although the dominance index of Bitcoin (BTC.D) is trending upwards, this upward trend is accompanied by a weakening of momentum. This is a classic sign that Bitcoin may have reached a temporary peak. Impact on liquidity: When BTC.D peaks, the investment trend may shift - from Bitcoin to other types of altcoins. Investors often rebalance their portfolios when they perceive lower risks or seek higher profits from new projects.
2. The Resistance of Tether Dominance (USDT.D) Important Resistance Level USDT.D encounters difficulties: Tether's dominance index (USDT.D) is currently facing strong resistance at an important trend line drawn from 2024. This resistance signals that not too much capital is flowing into stablecoin, a factor often used as a safe haven during volatile times. Liquidity release: When USDT.D can't continue to rise and is rejected at key resistance levels, it means fewer investors are transferring capital to stablecoins. As a result, existing capital will flow out and may be pumped into the altcoin market, paving the way for a strong recovery.
3. Liquidity Shift - What Is Changing? Comparing Two Market Phases Before stage (April - 9): During the period from April to September, both Bitcoin and altcoins faced significant downward pressure. Meanwhile, capital mainly shifted towards stablecoins like USDT to avoid risks. Current phase: Bitcoin stays strong: Despite the downward pressure on altcoins, Bitcoin maintains a relatively stable price, causing some liquidity to shift to BTC instead of stablecoin. BTC.D peaks, USDT.D faces resistance: When Bitcoin's dominance index reaches its peak, it implies that the capital shift trend has begun. At the same time, the resistance of USDT.D at important resistance levels further clarifies that liquidity may be ready to shift to altcoins.
4. Map to Altseason Essential Factors for the Altcoin Boom Bitcoin stability: When Bitcoin maintains a stable price and shows no signs of continuing to rise, its attractiveness will gradually decrease. This creates conditions for altcoins to become more attractive to investors. The weakening of stablecoin: If USDT.D cannot overcome the important resistance levels, the capital flow not shifting to stablecoin will be ready to pump into the altcoin market. Liquidity shift: The shift from Bitcoin and stablecoin to altcoin is the "key" to an altcoin season explosion. When these altcoins absorb this capital flow, they will have the potential for strong growth and create impressive rallies. Conclusion By summarizing the above signals, we can conclude that the cryptocurrency market is preparing for a promising Altseason. As Bitcoin loses its appeal after reaching its peak and USDT encounters strong resistance, free capital will tend to shift towards altcoins. Investors need to closely monitor the BTC.D and USDT.D indices, as well as signs of liquidity shifts, in order to keep up with the trends and optimize their investment portfolios. In the upcoming Altseason, seizing timely market fluctuations will be a crucial factor for investors to maximize profit opportunities in this highly volatile period.