There is always that moment in every crypto cycle when attention slowly shifts from Bitcoin to altcoins.

It starts with a few green candles on Ethereum. Then smaller coins begin to move.

Before long, traders on Twitter are shouting “altseason is here” and coins you never heard of are doing 5x in a week.

But is this truly the beginning of altseason? Or just another fakeout? To answer that, we need to look at the signs.

Altseason does not just show up unannounced. There are always indicators. Some appear before it begins while others confirm that we are already inside the storm.

In this post , we will go through five major things that usually happen before and during a real altseason. Let’s get started!

5 Key Indicators That Signal the Start of Altseason

So, how can you tell if the altseason has truly begun? These five signs will guide you.

1. Bitcoin dominance starts to drop

One of the first signs that altseason is near is a noticeable drop in Bitcoin dominance.

This simply means Bitcoin is losing its share of the total crypto market cap and altcoins are gaining.

When dominance is rising, most investors are holding Bitcoin. But when it starts to fall, they are moving money into altcoins.

This shift usually starts after Bitcoin has had a good run and traders begin looking for higher returns.

They become more willing to take risks and that risk-on behavior causes liquidity to flow into Ethereum, then other altcoins.

A sharp drop in Bitcoin dominance while the total crypto market cap is increasing is a classic early signal that altseason is beginning.

This does not always mean every coin will pump immediately but it shows that market attention is changing direction.

If you are trading during this phase, it is important to watch the Bitcoin dominance chart closely. It tells you where the capital is going.

2. Ethereum begins to outperform Bitcoin

Altseason rarely begins without Ethereum taking the lead. Ethereum is the gateway for altcoins.

It is the second-largest crypto by market cap and often acts like a bridge between Bitcoin and the rest of the market.

When Ethereum starts gaining value faster than Bitcoin, it is a major sign that investors are rotating out of BTC into alts.

This is usually confirmed by the ETH/BTC pair moving upward. Many traders use this specific chart as a guide.

When it shows strength, it means Ethereum is rising in relation to Bitcoin and that is a strong signal that altcoin season is warming up.

Ethereum is also connected to many other altcoins through DeFi and Layer 2 ecosystems. So once it begins to move, related coins like Arbitrum, Optimism, Avalanche, and others often follow.

If you want to spot altseason early, watching Ethereum is one of your best strategies. A strong ETH rally almost always sets the stage for the rest of the market to explode.

3. Mid-cap and low-cap coins start going parabolic

When altseason is truly here, you will not need to ask. Your watchlist will show it to you.

Coins with smaller market caps begin to make huge moves in a short time. Some go up 2x or 5x in a week. Others do even more.

This phase is usually very aggressive. It happens when traders feel confident and start to chase high-risk rewards.

Money flows from large caps like Ethereum into mid and low-cap altcoins. Even forgotten coins start waking up.

You will see tokens with weak fundamentals pumping because the crowd is focused on momentum.

This is when narratives matter most. Tokens that fit the latest trend, whether it is AI, gaming, memecoins, real-world assets, or DePIN, tend to outperform everything else.

This stage is both exciting and dangerous. Many traders make life-changing gains here.

But it is also where many lose money by entering too late. So it is important to avoid FOMO, and understand that parabolic moves do not last forever.

4. ETH/BTC Ratio Strengthens

If there is one chart that seasoned traders always check before declaring altseason, it is the ETH/BTC ratio.

This chart shows how Ethereum is performing relative to Bitcoin. When the ratio is rising, it means Ethereum is gaining value faster than Bitcoin.

That alone is a big deal. But it also sends a message to the entire market — the altcoin window is opening.

The ETH/BTC pair is often seen as a leading indicator. It is like a weather forecast for altcoins.

When this chart breaks out or forms a solid upward trend, altcoins tend to follow.

It is not always immediate, but the ripple effect is almost guaranteed. Traders move from BTC to ETH, and from ETH to other altcoins in search of higher rewards.

This is why ETH/BTC strength is such a key signal. Ethereum is still the king of altcoins.

When it begins to outperform Bitcoin, it gives the entire altcoin market confidence. It tells investors that it is time to rotate into more speculative plays.

So if you are watching for early signs of altseason, do not just look at Ethereum’s dollar price.

Look at how it is performing against Bitcoin. A strong ETH/BTC trend is one of the cleanest and most reliable setups in the entire market.

5. Altcoin Season Index Crosses 75

For anyone who prefers clear, quantifiable signals, the Altcoin Season Index is a must-watch.

This index measures how well altcoins are performing relative to Bitcoin. It tracks the top 50 coins (excluding stablecoins and Bitcoin) over the last 90 days.

If at least 75 percent of those coins have outperformed Bitcoin, the index reads above 75, and that’s when it officially becomes altcoin season.

This metric takes out the guesswork. It gives a real-time, data-backed confirmation of what many traders feel emotionally.

Instead of relying only on social media hype or single coin performance, the index offers a big picture view. It shows if the broader altcoin market is actually doing better than Bitcoin or not.

When the Altcoin Season Index moves above 75, it is often during periods when Bitcoin is consolidating or slightly declining while altcoins are breaking out.

It is a sweet spot for traders who want to rotate profits from BTC into other coins without catching falling knives.

The beauty of this index is its simplicity. You do not need to analyze multiple charts or track countless coins.

A single number gives you a clear signal. If it is above 75, altseason is not just beginning, it is already happening.

In summary, these are some of the clearest signs that the market is overheating and that altseason is in full swing.

But every bull cycle eventually cools down.

So if you’re seeing this along with the other signs, it might be a smart time to lock in some profits and avoid getting too greedy. Let’s wrap it up.

Conclusion

Has altseason really begun or are we still early?

The signs are always there if you know where to look. A drop in Bitcoin dominance. Ethereum leading the charge. Small caps going vertical,and everything else that follows.

When you see at least three or four of these at once, the chances are high that you are in or near a real altseason.

But timing is everything. Entering too early can be just as painful as entering too late. That is why it is important not to FOMO, and to manage risk carefully.

Altseason can change your portfolio fast. It is one of the most explosive phases in the crypto market.

But it is also one of the most emotional. If you stay focused, follow the signs, and avoid chasing pumps blindly, you stand a good chance of not just surviving altseason, but thriving in it.

Do you think we’re just seeing the start of altseason? Share your thoughts in the comments.

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