Analysts: Altcoins Poised for Strongest Rally Since 2017

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The crypto market is buzzing with speculation as altcoins begin to show signs of a powerful resurgence. With double- and triple-digit gains sweeping across various tokens, growing momentum in market capitalization, and key macroeconomic indicators aligning favorably, many analysts believe we may be on the cusp of a full-fledged altcoin season—potentially the strongest since 2017.

Signs Pointing to an Emerging Altcoin Season

In the second quarter of 2025, the total market capitalization of altcoins—excluding Ethereum (ETH)—surged by $126 billion, capturing the attention of traders and analysts alike. This sharp increase has reignited long-standing discussions about the arrival of an altcoin season, a phase in the crypto cycle where investor capital begins rotating from Bitcoin into a wide array of alternative cryptocurrencies.

One of the most compelling indicators comes from the TOTAL3 index, which tracks the combined market cap of all cryptocurrencies except Bitcoin and Ethereum. When compared against the U.S. money supply (M2), a notable divergence has emerged: altcoins are beginning to outpace monetary expansion, suggesting increasing investor appetite and capital inflows into the sector.

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Cryptocurrency analyst Javon Marks recently shared an insightful chart on X (formerly Twitter), highlighting this relationship. He pointed out that the TOTAL3 index has broken out relative to U.S. money supply trends and has now retested a critical support level—historically a bullish signal.

"Altcoins have rebounded from a key retest of their breakout against U.S. money supply—a pattern that could lead to the strongest rally since 2017!" — Javon Marks

This kind of macro-level alignment has only occurred during major bull markets in the past, including 2017 and 2021. The implication? We may be witnessing the early stages of a similar cycle.

Technical Patterns Suggest Strong Upside Potential

Adding further weight to the bullish narrative, anonymous trader Moustache identified a weekly inverse head and shoulders pattern forming on the TOTAL3 chart. This classic technical formation is widely recognized as a reversal signal, often preceding substantial upward moves.

When comparing current price action to 2021’s altcoin season, the similarities are striking. In that cycle, top altcoins surged by as much as 174% in the final phase, while Bitcoin rose only about 20%—a clear sign of capital rotation into riskier assets.

If history repeats, this pattern suggests that altcoins could soon enter a phase of accelerated growth, potentially reaching significantly higher valuation levels over the coming months.

Not All Analysts Are Convinced: Caution Amidst Optimism

Despite growing optimism, not all voices in the crypto space are sounding bullish alarms. Some experts urge caution, citing incomplete technical confirmations and lingering dominance from Bitcoin.

Technical analyst Crypto Scient argues that while altcoin market cap has risen, it hasn’t yet confirmed a sustained high-timeframe (HTF) trend reversal. The TOTAL2 index—which includes Bitcoin and Ethereum—remains below the $1.25 trillion resistance level and continues to exhibit bearish characteristics.

"With both BTC and TOTAL approaching resistance zones and TOTAL2 still having room to move, I lean toward viewing this as an accumulation or distribution phase rather than a confirmed altseason."

This perspective underscores a key point: market transitions don’t happen overnight. Even if momentum is building, structural confirmation is still needed before a full-blown altcoin rally can be declared.

Bitcoin Dominance Holds Key to Market Rotation

Another critical factor being monitored is Bitcoin dominance (BTC.D)—a metric that shows Bitcoin’s share of the total crypto market cap. Currently, BTC.D remains above 60%, with its weekly trendline intact, according to data from TradingView shared by commentator DonaXBT.

Historically, major altcoin seasons have only gained steam after Bitcoin dominance breaks down below 60% and retests support between 56% and 58%. This breakdown typically signals that traders are shifting capital out of Bitcoin and into higher-risk, higher-reward altcoins.

Until that threshold is crossed, many analysts believe the altcoin market will remain in a preparatory phase—building momentum but not yet in full flight.

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Low Trading Volume Indicates Early-Stage Momentum

Despite rising prices and market cap gains, spot trading volume for altcoins remains relatively low. According to data from CryptoQuant, daily altcoin spot volume currently ranges between $3 billion and $5 billion, well below the $8 billion to $12 billion seen during peak activity in Q4 2024.

While this might seem concerning, many analysts interpret it as a positive sign. Low volume during price increases often indicates early-stage accumulation—meaning the broader market hasn’t fully participated yet. This lack of widespread retail involvement suggests there’s significant upside potential once momentum picks up.

In past cycles, surging trading volumes have followed such quiet phases, often leading to parabolic moves.

Altcoin Season Index Confirms Bitcoin’s Current Dominance

The Altcoin Season Index (ASI) currently stands at 24, according to data from Blockchaincenter.net. This metric evaluates whether 75 out of the top 100 altcoins are trading above their 200-day moving average. A reading below 25 indicates that Bitcoin is still in control—a "Bitcoin-dominated" market.

However, this is typically a precursor to an altseason. Once the ASI breaks above 30–40, it signals broad-based strength across altcoins and often coincides with strong outperformance relative to BTC.

With the index showing early signs of upward movement and macro fundamentals improving, confidence is growing among investors that a shift may be imminent.

Frequently Asked Questions (FAQ)

Q: What defines an "altcoin season"?
A: An altcoin season occurs when investor capital flows aggressively from Bitcoin into alternative cryptocurrencies, causing widespread price increases across the altcoin market—often outpacing Bitcoin’s gains significantly.

Q: How is the Altcoin Season Index calculated?
A: The Altcoin Season Index measures how many of the top 100 cryptocurrencies (excluding Bitcoin) are trading above their 200-day moving average. A value above 75 indicates a full altseason; below 25 suggests Bitcoin dominance.

Q: Why is low trading volume not necessarily bad for altcoins?
A: Low volume during rising prices often reflects early accumulation by institutional or smart money investors. It suggests limited public participation so far, leaving room for explosive growth when broader adoption kicks in.

Q: Can an altcoin season happen if Bitcoin is still rising?
A: Yes. While Bitcoin often leads early bull market phases, altcoins can surge even as BTC climbs—especially when macro liquidity expands and investor risk appetite increases.

Q: What role does U.S. money supply play in crypto rallies?
A: Expansions in U.S. monetary supply (like M2) historically correlate with increased investment in risk assets, including cryptocurrencies. More liquidity in the system often finds its way into speculative markets like altcoins.

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Core Keywords:

With technical patterns forming, macro indicators aligning, and early-stage accumulation underway, the foundation for a powerful altcoin rally appears to be taking shape. While confirmation signals are still developing, the current environment echoes conditions seen before previous explosive market phases—making 2025 a year to watch closely for those positioned in or preparing for the next wave of crypto growth.