Key Takeaways:
Declining Bitcoin dominance and rising strength in altcoins and memecoins could be a sign that it’s altseason.
USDT dominance could drop to 2022 lows, indicating an accelerating capital rotation into Bitcoin and other cryptocurrencies.
The cryptocurrency market shows signs that an altseason, a period where altcoins significantly outperform Bitcoin (BTC), could be on the horizon. Technical charts and market sentiment align to suggest that May 2025 might start a broader altcoin rally, driven by key indicators and shifting capital flows.
The TOTAL2 chart, representing the total market capitalization of all cryptocurrencies, excluding Bitcoin, has broken above a downtrend line in place since January 2025. This breakout is accompanied by a bullish break of structure (BOS) on the daily chart, forming higher-low patterns.
TOTAL2 chart 1-day. Source: Cointelegraph/TradingView
A decisive move above the $1.25 trillion resistance level could support a decisive uptrend comprised of higher lows and higher